Small Business Taxes & ManagementTM--Copyright 2013, A/N Group, Inc.
On Monday, April 15, IRS announced (IR-2013-42) that it will provide penalty relief to anyone unable to file on time due to severe storms in parts of the South and Midwest over the past few days.
Power outages and transportation problems are, in some cases, making it very difficult or impossible for some taxpayers and tax professionals to meet the regular April 15 filing deadline. As a result, taxpayers directly impacted by these storms will qualify for penalty relief, based on reasonable cause, if, due to these storms, they are unable to file their returns or pay tax due until after tonight’s midnight deadline. This relief applies to the late-filing penalty, normally 5 percent per month, and the late-payment penalty, normally 0.5 percent per month, provided taxpayers file the return or pay the tax within a reasonable time after the power outages and transportation problems have been resolved.
Affected taxpayers may receive penalty notices from the IRS. If so, the IRS will abate these penalties if they request reasonable cause relief, based on the April storms. By law, the IRS cannot abate interest.
Copyright 2013 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles in this publication are not intended to be used, and cannot be used, for the purpose of avoiding accuracy-related penalties that may be imposed on a taxpayer. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536
--Last Update 04/15/13