Daily Tax Update - September 28, 2012: IRS Reminds Taxpayers of October 15th Filing Extension Deadline

IRS REMINDS TAXPAYERS OF OCTOBER 15th FILING EXTENSION DEADLINE:  Today, the IRS reminded taxpayers that October 15th is the final day for most taxpayers who requested a six-month filing extension.  The IRS said that more than 11 million taxpayers who requested an automatic six-month extension this year have yet to file. 

According to the IRS, "Taxpayers with extensions should file their returns by Oct. 15, even if they can’t pay the full amount due.  Doing so will avoid the late-filing penalty, normally 5% per month, that would otherwise apply to any unpaid balance after Oct. 15. However, interest and late-payment penalties will continue to accrue."  The IRS added, “Alternatively, some struggling taxpayers qualify for an offer-in-compromise.  This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.  Generally, an offer will not be accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement.  The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay."

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE: 
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE 
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country.  The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court.  The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving.  Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.