Extension Given for Entities with Missed Deadlines under the Surface Transportation Act of 2015
Again the IRS has granted an extension relief for partnerships and certain other entities that missed new deadlines under the Surface Transportation Act of 2015. The IRS explained that fiscal-year filers whose tax years began in 2016 but did not end until 2017 are granted expanded relief as long as the named entities missed the new March 15, 2017 deadline for filing a 2016 tax-year return or a timely request for an extension by that date, as long as they filed a return or extension request by the old April 18, 2017 deadline.
The IRS explained that many entities required to file partnership returns filed their returns or took other actions by the old due date. If not for the Surface Transportation Act, these returns and other acts would have been timely. Under Notice 2017-71, any act performed for the 2016 tax year of a partnership, REMIC, or certain other entities will be treated as timely for all purposes under the Tax Code, except with respect to interest.
Noe the IRS has updated Notice 2017-71, that now extends the relief to fiscal-year filers whose tax years began in 2016 but did not end until 2017. An entity that has already been assessed a penalty for failure should expect to receive a letter abating the penalty within the next several months, if an entity does not receive an abatement notice by February 28, 2018, the taxpayer should contact the IRS. Taxpayers that qualify for relief under Notice 2017-70 will not be treated as having received a first-time abatement under the agency’s administrative penalty waiver program.