Penalty Relief Available to Some Storm Victims Unable to File on Time
The Internal Revenue Service (IRS) has announced it will provide penalty relief to anyone unable to file on time because of severe storms in parts of the South and Midwest during the week of April 8.
In some cases, power outages and transportation problems made it difficult or impossible for some taxpayers and tax professionals to meet the regular April 15 filing deadline. As a result, taxpayers directly affected by these storms qualify for penalty relief, based on reasonable cause, if they were unable to file their returns or pay tax due until after the April 15 midnight deadline because of these storms. This relief applies to the late-filing penalty (typically 5 percent per month) and the late-payment penalty (typically 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.
(From NRCA Newsletter)
Trenton H. Cotney
Florida Bar Certified Construction Lawyer
Trent Cotney, P.A.
1211 N Franklin St
Tampa, FL 33602