IRS Chief Counsel Memorandum on penalties under proposed electronic-filing requirements
Penalties under proposed electronic-filing requirements under sections 6651 and 6652
Penalties under proposed electronic-filing requirements under sections 6651 and 6652
The IRS Chief Counsel released a Program Manager Technical Assistance Memorandum concerning the application of the additions to tax under sections 6651 and 6652 to a filer that submitted a specified return on paper when required to file the return electronically.
Read Memorandum PMTA-2022-05 [PDF 149 KB] (dated July 8, 2022)
At issue was whether a filer that submits specified returns on paper when required to file the specified returns electronically is subject to the addition to tax for failure to timely file under section 6651, or section 6652 if appropriate.
The additions to tax for failure to timely file a tax return under section 6651(a)(1), and for failure to timely file certain information returns, registration statements, etc., under section 6652(c), apply to a filer that submits paper Forms 5330, 4720, 5227, 1042, or 1120-POL when the filer is required to file electronically by regulations.
The U.S. Department of the Treasury and the IRS on July 23, 2021, published a notice of proposed rulemaking (REG-102951-16), providing guidance on the electronic-filing rules for partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports, and certain excise tax returns. Read TaxNewsFlash
The proposed regulations would require filers of Forms 5330, 4720, 5227 and 1120-POL to file those returns electronically if the filer is required to file at least 10 returns of any type during the calendar year. The proposed regulations would also require filers of Forms 1042 to file those returns electronically if the filer is required to file 250 returns of any type during the calendar year, or if the filer is a financial institution (regardless of the number of returns the financial institution is required to file during the calendar year). Until final regulations are published, these forms are not subject to electronic filing requirements, except Form 4720 when required to be electronically filed by a private foundation by reason of section 6033(n). In Notice 2021-01, the IRS set forth its position that private foundations are required to electronically file a Form 4720 under section 6033(n). Read TaxNewsFlash
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Ruth Madrigal | ruthmadrigal@kpmg.com
Preston Quesenberry | pquesenberry@kpmg.com
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