In the wake of the September 11 terrorist attacks, the IRS has authorized additional relief measures for taxpayers who are adversely affected by the attacks. Affected taxpayers include taxpayers whose records, computers, or other essential supporting services were lost or damaged, or whose essential personnel were injured or killed in the September 11 attacks.
New relief measures for affected taxpayers include:
- Affected taxpayers who have already received an extended deadline between December 1, 2001 and January 31, 2002 for filing tax returns are now given until February 15, 2002, to file any extended tax returns.
- Affected taxpayers facing a deadline during December 2001 for filing a Tax Court petition are given an additional 60 days to file their petition.
- Partnerships qualifying as affected taxpayers may choose to file a paper Form 1065 instead of filing electronically without facing penalty. This relief is for partnership returns that have an original or extended due date on or after September 11, 2001, and on or before November 30, 2001.
- Owners and beneficiaries of pass-through entities, such as partnerships, estates, trusts, and S-corporations, who, due to the effects of the attacks, do not receive K-1 forms in time to file their returns, may request extensions of time to file their returns. If the K-1 forms are not received by the extended due date, taxpayers may file returns using reasonable estimates and then amend their returns when the K-1 forms arrive. These taxpayers will not face late payment penalties should their tax be impacted negatively when the actual numbers from the K-1 forms are used.
- Affected taxpayers involved in a non-taxable like-kind exchange and who are facing a deadline between September 11, 2001 and November 20, 2001, are allowed a 120-day postponement of time to perform the exchange.
IRS Commissioner Charles O. Rossotti said",We want to give appropriate relief to those affected by this terrible tragedy. Tax professionals asked us to consider situations beyond those we originally addressed. We have done so and welcome their future suggestions for good tax administration."
IRS Notice 2001-68 and Revenue Procedure 2001-53 explain all of these relief measures in detail.
Taxpayers who qualify for these relief measures should write the words "Sept. 11, 2001 Terrorist Attack" in red on the top of their tax forms. These taxpayers are warned not to place this wording on the envelope in which the forms are mailed as this could cause a delay in processing the return.