The American Taxpayer Relief Act of 2012 (enacted January 2, 2013) affected a number of tax forms—see Exhibit 1 on the last page of Notice 2013-24—and this late enactment date also delayed the IRS’s ability to release, accept, and process these forms.
Notice 2013-24 [PDF 13 KB] notes that the IRS form delays also may have affected the ability of some taxpayers to make timely estimates and payment of their 2012 tax liability when requesting an extensions to file. Thus, Notice 2013-24 provides transitional relief.
The IRS will in general automatically assess the section 6651(a)(2) late-payment penalty against taxpayers who pay late, and then send notice and demand for payment of the addition to tax.
However, for each taxpayer who requests or has requested an extension to file a 2012 income tax return that includes one of the forms listed in Exhibit 1 of Notice 2013-24, the IRS announced that it will deem the taxpayer to have demonstrated reasonable cause and lack of willful neglect—provided:
- A good faith effort was made to properly estimate the tax liability on the extension application.
- The estimated amount is paid by the original due date of the return.
- Any tax owed on the return is fully paid no later than the extended due date of the return.
The IRS stated that it will abate any late-payment penalties under section 6651(a)(2) that are assessed with respect to these 2012 income tax returns.
Notice 2013-24 directs taxpayers that in responding to an IRS assessment notice, they are to write a letter:
- Describing the taxpayer’s eligibility for this relief
- Identifying which of the form(s) listed in Exhibit 1 of Notice 2013-24 was included with the taxpayer’s return as filed
- Referencing Notice 2013-24 by number
As the IRS noted in a related release—IR-2013-31 [PDF 45 KB]—Notice 2013-24 does not affect an assessment of interest. Interest will still apply to any tax payment made after the original due date.