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Tax penalty relief for some who file for an extension

By putting off critical 2012 tax legislation all of last year and then finally rolling it into the fiscal cliff bill, formally known as the American Taxpayer Relief Act (ATRA), in early January, Representatives and Senators placed huge roadblocks in this year’s filing season and system.

As we waited for the IRS to play catch up and update forms and its computer system, many of us came to the frustrating realization that we would have to file for an extension.

That means that IRS likely will be processing a lot more returns than usual after the April 15 deadline.

Penalty relief for late form filers: And the tax agency has announced it will not penalize some of those many taxpayers who file for an extension, but who don’t pay a sufficient amount of their due tax when they submit the request via Form 4868.

Remember that the automatic extension to file is six extra months to get the tax forms in, not six extra months to pay any tax you owe.

The IRS announced today that the penalty relief will be automatically granted to folks whose returns include any of the 31 forms that were delayed. They are:

1. Form 3800, General Business Credit

2. Form 4136, Credit for Federal Tax Paid on Fuels

3. Form 4562, Depreciation and Amortization

4. Form 5074 Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands

5. Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations

6. Form 5695, Residential Energy Credits

7. Form 5735, American Samoa Economic Development Credit

8. Form 5884, Work Opportunity Credit

9. Form 6478, Credit for Alcohol Used as Fuel

10. Form 6765, Credit for Increasing Research Activities

11. Form 8396, Mortgage Interest Credit

12. Form 8582, Passive Activity Loss Limitations

13. Form 8820, Orphan Drug Credit

14. Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit

15. Form 8839, Qualified Adoption Expenses

16. Form 8844, Empowerment Zone and Renewal Community Employment Credit

17. Form 8845, Indian Employment Credit

18. Form 8859, District of Columbia First-Time Homebuyer Credit

19. Form 8863, Education Credits

20. Form 8864, Biodiesel and Renewable Diesel Fuels Credit

21. Form 8874, New Markets Credits

22. Form 8900, Qualified Railroad Track Maintenance Credit

23. Form 8903, Domestic Production Activities Deduction

24. Form 8908, Energy Efficient Home Credit

25. Form 8909, Energy Efficient Appliance Credit

26. Form 8910, Alternative Motor Vehicle Credit

27. Form 8911, Alternative Fuel Vehicle Refueling Property Credit

28. Form 8912, Credit to Holders of Tax Credit Bonds

29. Form 8923, Mine Rescue Team Training Credit

30. Form 8932, Credit for Employer Differential Wage Payments

31. Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit

Form 8863, Education Credits, and Form 4562, Depreciation and Amortization, became available in mid-February, although many folks claiming the American Opportunity education tax credit have since had other filing problems and delays.

The other 29 forms weren’t available until early March.

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