If you are one of the many taxpayers who extended their 2012 federal tax return, the IRS has provided you with a potential freebie. If you end up having a balance due when you file your extended federal tax return, you may be able to avoid having to pay a late-payment penalty.
The IRS recently issued Notice 2013-24, which provides relief of the late-payment penalty to taxpayers who pay the balance of their 2012 tax after the initial filing deadline, if they have certain forms included in their tax return. The late-payment penalty is 0.5% per month on any tax payments made after the regular filing deadline. The relief applies to any form that was delayed in being released due to the American Taxpayer Relief Act. Some of the more common forms are:
• Form 3800, General Business Credit
• Form 4562, Depreciation and Amortization
• Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations
• Form 5884, Work Opportunity Credit
• Form 8582, Passive Activity Loss Limitations
There are more than 30 forms that will allow you to qualify for this relief, so if you owe money with your tax return, be sure to check the list of eligible forms.
In order to qualify for this relief, taxpayers must have properly requested an extension to file their 2012 tax returns and properly estimated and paid their expected tax liability by the original due date of the tax returns. No special request or notation is necessary to take advantage of this relief. Please see Notice 2013-24 for more details and a complete list of eligible forms.
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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.