• AICPA rumors a pardon on late filing fees for taxpayers affected by COVID-19
  • Wolters Kluwer CCH is prepared to help users after the deadline date software crash

Rumors are spreading from the American Institute of CPAs (AICPA) that the IRS is in the works of forgiving late filing penalty fees from the September 15th deadline for taxpayers affected by the pandemic. While nothing is certain, the AICPA feels confident in its conversations with the IRS that taxpayers who write “COVID-19” on the top of their returns will not be penalized for late filing.

Melanie Lauridsen, senior manager for tax policy and advocacy at the AICPA, said earlier last week: “I think the IRS truly does understand that people are impacted by coronavirus… Based on our conversations, the IRS does not want to penalize people who are making a good-faith effort.” With the loose terminology of “good faith effort,” how will the IRS decide which taxpayers delayed payment in “good faith” and which are taking advantage of the times?

The IRS has not yet released any official statements, but between the pandemic and the recent outbreak of natural disasters, relief is becoming increasingly necessary.

Compared to such events, the CCH tax software crash on the 9/15 deadline day was just another roadblock added to this hectic 2019 filing season. With electronic filing systems down until after the midnight deadline, a number of extended business returns were not filed until the 16th.

Fortunately, CCH has been in contact with the IRS and released a statement on 9/17 regarding the situation: “The nature of the disruption with our electronic filing system provides “reasonable cause” for any returns due on 9-15-20, but filed on 9-16-20 due to this issue and accordingly, those returns should be considered filed timely.” No action is required to get forgiveness; however, those who do receive a penalty fee are instructed to contact CCH.

How do these changes affect you and your businesses? Call us at 516-541-6549 or check out our DSJCPA COVID-19 Information Center to stay up to date.

Sincerely,

Devin McQuillan
Associate, Creative Solutions

Contact:
516-541-6549 | Email

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