On Wednesday, February 20, the IRS announced that it will waive the penalty normally assessed for late payment of income tax, for taxpayers who have requested an extension of time to file their return and who are filing one of the 31 forms that were delayed until March because of the last-minute tax law changes. Those changes were last minute changes required thanks to the American Taxpayer Relief Act of 2012. You can review a list which contains all of the 31 forms by reading Notice 2013-24 here.

The IRS does warn that even if you are provided relief thanks to their announced notice you may still receive an automatic assessment notice and demand for payment. If so, contact Scholl & Company right away and we can help you get the matter resolved.

The IRS believes the late issuance of those 31 forms may prevent some taxpayers from being able to timely estimate and pay their 2012 tax liability when requesting an extension to file. Under the relief, the IRS will assume you have demonstrated reasonable cause and lack of willful neglect if you make a good-faith effort to properly estimate your tax liability on the extension application, the estimated amount is paid by the original due date of the return, and any tax owed on the return is fully paid no later than the return’s extended due date.

Because the IRS automatically assesses the late-payment penalty, relief under this notice is obtained by responding to the penalty assessment notice in a letter, explaining your eligibility for the relief, identifying which of the forms eligible for relief were included with the taxpayer’s return, and referring to Notice 2013-24 in the letter. Again, contact Scholl & Company right away and we can help you get the matter resolved.

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