A hypothetical situation:
If someone is in a terrible accident in December and is in a coma far past the extended filing deadlines. Will the IRS impose penalties for having a late filing?
I think I know the answer to this, but…
A hypothetical situation:
If someone is in a terrible accident in December and is in a coma far past the extended filing deadlines. Will the IRS impose penalties for having a late filing?
I think I know the answer to this, but…
Well, after we made a tax payment for my father-in-law, who had brain surgery four days before the deadline, two days late, the IRS sent him a bill for the tiny amount of interest. They didn’t charge penalties, but then again, we were only two days late.
The penalty will be applied. But then once you explain the situation, it will most likely be waived based on reasonable cause.
According to the Internal Revenue Manual 1.2.12.1.2:
That’s good to know and about as fair as one would expect under the circumstances.
Yeah, a coma is about the best excuse for late filing ever.
Regarding interest: based on interpretation of the tax code and regulations, the IRS has no authority to waive interest. So they can and will waive penalties, but interest will still apply if payments are not made by the due dates.