Penalty Relief for Late-Filed Partnership Returns Provided (IR-2017-141; Notice 2017-47)

The IRS has provided penalty relief to partnerships that filed untimely returns or untimely requests for extension of time to file those returns for the first tax year that began after December 31, 2015. In order to qualify for relief certain conditions must be satisfied.

In order to qualify for relief:

1. The partnership filed the Form 1065, 1065-B, 8804, 8805, 5471 or other return required to be filed and furnished copies or Schedules K-1 to the partners by the old due date (April 18, 2017, for calendar-year taxpayers).

2. The partnership filed Form 7704 to request an extension of time to file by the old due date (April 18, 2017, for calendar-year taxpayers) and files the returns and furnishes copies or Schedules K-1 by the old extended due date (September 15, 2017, for calendar-year taxpayers). If the partnership filed Form 1065-B and was required to furnish Schedules K-1 to the partners by March 15, 2017, it must have done so to qualify for relief.

The relief will be granted automatically for penalties for failure to timely file Forms 1065, 1065-B, 8804, 8805, and any other returns, such as Form 5471, for which the due date is tied to the due date of Form 1065 or Form 1065-B. Partnerships that qualify for relief and have already been assessed penalties can expect to receive a letter within the next several months notifying them that the penalties have been abated. For reconsideration of a penalty covered by the notice that has not been abated by February 28, 2018, contact the number listed in the penalty notification or call (800) 829-1040 and claim relief under Notice 2017-47 . Taxpayers who qualify for relief under this notice will not be treated as having received a first-time abatement under the IRS’s administrative penalty waiver program.

IR-2017-141

Notice 2017-47

Other References:

Code Sec. 6038

CCH Reference – 2017FED ¶35,544.10

Code Sec. 6072

CCH Reference – 2017FED ¶36,723.01

Code Sec. 6651

CCH Reference – 2017FED ¶39,475.34

Code Sec. 6679

CCH Reference – 2017FED ¶39,840.30

Code Sec. 6698

CCH Reference – 2017FED ¶40,000.10

Code Sec. 6721

CCH Reference – 2017FED ¶40,220.75

Code Sec. 6722

CCH Reference – 2017FED ¶40,240.58

Tax Research Consultant

CCH Reference – TRC PART: 18,160.05

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup