Penalty Relief due to COVID-19
For those that may have missed the September 15th filing deadline, relief may be available. The American Institute of CPAs believes that taxpayers will be able to avoid penalties if they write “COVID-19” at the top of their return. Based on conversations the AICPA had with IRS officials, it is clear that if a taxpayer was harmed by the pandemic in a way that made filing timely an issue, that penalty relief will be available.
The Internal Revenue Service’s Manual already provides for penalty waivers where there is reasonable cause. In the case of the current pandemic, taxpayers who make a good-faith effort to file on time and acted with ordinary care and prudence may be considered for the relief.
