Relief Available to Many Extension Requesters Claiming Tax Benefits

On March 20, 2013, the IRS provided late-payment penalty relief to individuals and businesses requesting a tax-filing extension because they're attaching to their returns any of the forms 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 (see below listing), 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 qualify for this relief. 

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.

Further details on this relief, including instructions for responding to penalty notices, is available in Notice 2013-24.

Delayed Forms

Here's a listing of the delayed 2012 forms (available in February 2013 or the first week of March 2013); included are the popular Education, Adoption, and Energy Efficient Home credits:

  • Form 4562, Depreciation and Amortization (Including Information on Listed Property)
  • Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands
  • Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations
  • Form 5695, Residential Energy Credits
  • Form 5735, American Samoa Economic Development Credit
  • Form 5884, Work Opportunity Credit
  • Form 6478, Alcohol and Cellulosic Biofuels Credit
  • Form 6765, Credit for Increasing Research Activities
  • Form 8396, Mortgage Interest Credit
  • Form 8582, Passive Activity Loss Limitations
  • Form 8820, Orphan Drug Credit
  • Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit
  • Form 8839, Qualified Adoption Expenses
  • Form 8844, Empowerment Zone and Renewal Community Employment Credit
  • Form 8845, Indian Employment Credit
  • Form 8859, District of Columbia First-Time Homebuyer Credit
  • Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)
  • Form 8864, Biodiesel and Renewable Diesel Fuels Credit
  • Form 8874, New Markets Credits
  • Form 8900, Qualified Railroad Track Maintenance Credit
  • Form 8903, Domestic Production Activities Deduction
  • Form 8908, Energy Efficient Home Credit
  • Form 8909, Energy Efficient Appliance Credit
  • Form 8910, Alternative Motor Vehicle Credit
  • Form 8911, Alternative Fuel Vehicle Refueling Property Credit
  • Form 8912, Credit to Holders of Tax Credit Bonds
  • Form 8923, Mine Rescue Team Training Credit
  • Form 8932, Credit for Employer Differential Wage Payments
  • Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit

Source: IRS News Release

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