Both the IRS and Massachusetts Department of Revenue will grant penalty relief on 2012 tax returns filed by July 15, 2013 for taxpayers in the City of Boston and Suffolk County areas who were affected by the Boston Marathon bombings.
We strongly recommend that if your return is currently on extension, you consider sending us your information within the next few weeks to meet the July 15th filing deadline to take advantage of any penalty relief opportunities should they apply. If your return is awaiting information that will come in after July 15th, we would be happy to discuss your situation and evaluate whether filing with an estimate before July 15th makes sense.
The IRS granted an extension of time to file 2012 tax returns until July 15, 2013 for taxpayers affected by the Boston Marathon bombings. No late filing or late payment penalties will be imposed so long as your return is filed and the tax is paid by July 15, 2013. The relief applies whether you filed an extension or not. By law, interest, currently at the annual rate of 3 percent compounded daily, will still apply to any payments made after the April deadline.
Eligible taxpayers include all individuals living in Suffolk County, victims of the explosions and their families, first responders, and any other taxpayers living outside of Suffolk County who were affected. The IRS will automatically provide this extension to anyone living in Suffolk County. If you live in Suffolk County, no further action is necessary to obtain this relief. Other taxpayers living outside Suffolk County may claim the relief by calling 1-866-562-5227.
Similar penalty relief applies to Massachusetts individual tax filings. Relief for affected taxpayers does not apply to trustee tax returns and payments, including sales or use tax returns/payments, meals tax returns/payments, room occupancy tax returns/payments, and employer withholding tax returns/payments. Massachusetts will consider removing late-file and late-pay penalties for trustee tax returns and payments where the taxpayer has reasonable cause. In addition, the extensions do not apply to taxpayers that have previously filed their returns but not yet made payment.
Please note, interest still does apply to any payments made after the April deadline to both the IRS and MA DOR. Also, a taxpayer that does not meet the extended July 15, 2013 due date will owe penalties dating back to the original tax return or tax payment due date.
Please do not hesitate to contact our office regarding any questions pertaining to your situation.