Late-Penalty Relief for Extended Filers

Due to delays at the start of the tax season, the IRS is providing late-payment penalty relief to individuals and businesses requesting a tax-filing extension because they are attaching forms to their returns that couldn't be filed until after January.

The relief applies to the late-payment penalty, normally 0.5 percent per month, charged on tax payments made after the regular filing deadline. This relief applies to any of the forms delayed until February or March, primarily due to the January enactment of the American Taxpayer Relief Act.

Taxpayers using forms claiming such tax benefits as depreciation deductions and a variety of business credits, including the Work Opportunity Credit qualify for this relief, as well as the following:

  • Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)
  • Form 8908, Energy Efficient Home Credit
  • Form 8839, Qualified Adoption Expenses
  • Form 5695, Residential Energy Credits

Please call us for a complete list of delayed forms.

Individuals and businesses qualify for this relief if they properly request an extension to file their 2012 returns. Eligible taxpayers need not make any special notation on their extension request, but as usual, they must properly estimate their expected tax liability and pay the estimated amount by the original due date of the return.

The return must be filed and payment for any additional amount due must be made by the extended due date. Interest still applies to any tax payment made after the original deadline.

Give us a call if you're planning on filing a tax extension this year. We'll make sure you get the late-penalty relief you are entitled to.