Contributed by: KristineS, FreeTaxUSA Agent, TaxPro
News from the National Taxpayer Advocate
Important news from the National Taxpayer Advocate inside the 2024 Purple Book. Your tax return and electronic payment sent to the IRS may not be considered ‘on time,’ even if you can confirm it was electronically filed by the April 15th due date.
Each year the National Taxpayer Advocate appears before Congress with their report of findings on IRS processes and services and include recommended changes. The short form of this report is called the Purple Book.
How can I know what is considered late?
Inside the 2024 Purple Book under the section titled ‘Improve the Filing Process, National Taxpayer Advocate, Erin Collins, has identified that even when taxpayers submit their tax returns via e-file on April 15th, and include payment, if the return and payment are accepted by the IRS after the 15th it’s technically considered late.
How does filing 'on time' currently work?
When FreeTaxUSA transmits your tax return, we recommend you allow up to 48 hours before the IRS accepts it, sometimes longer, and you receive both a confirmation email it was accepted, and a notification in your account. However, FreeTaxUSA can’t control when the IRS accepts your return or payment, even if transmitted on April 15th.
“If the IRS does not receive an electronically submitted document or payment until after the due date, the document or payment is considered late, even if the taxpayer can produce confirmation that he or she transmitted the payment or document on or before the due date.” as stated in the National Taxpayer Advocate report.
What can I do?
The National Taxpayer Advocate is recommending Congress update the law behind this section of the Internal Revenue Code (IRC). However, unless or until Congress takes that action, FreeTaxUSA recommends you file your tax return, with payment if included, prior to April 15th, to increase the likelihood your return and payment are considered submitted on time.
If you receive a letter from the IRS that charges a late payment or late filing penalty, you can either send a letter requesting the penalty be removed stating your intent was to file on time, and provide documentation your return was e-filed timely, or you can send the IRS Form 843, Claim for Refund and Request for Abatement. The IRS may or may not agree to remove the penalty.
