Glenn Bailey, CPA

IRS has published Notice 2013-24 that allows a waiver of the .5% late payment penalty for anyone who files an extension, has underpaid their tax and was affected by the delay in release of certain IRS forms.  Taxpayers must demonstrate “reasonable cause” and make a good faith effort to pay the proper amount with their extension even if they aren’t sure what the actual amount should be.  So filing an extension with no payment when you owe $100k may not demonstrate good faith.

To claim this relief a taxpayer should respond to the IRS assessment notice with a letter describing the taxpayer’s eligibility for relief under Notice 2013-24 and identifying the eligible form that affected the taxpayer.

Eligible forms listed in the Notice are:

  • Form 3800, General Business Credit
  • Form 4136, Credit for Federal Tax Paid on Fuels
  • 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

For additional details, visit the IRS website. 

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