The IRS issued Notice 2017-71 on Nov. 30 providing additional relief for partnerships and real estate mortgage investment conduits (REMICs) that inadvertently late-filed certain partnership tax returns or other forms for tax years beginning after Dec. 31, 2015.
In 2015, Congress amended the due dates by which businesses must file tax returns, effective for tax years beginning after Dec. 31, 2015. Under the law change, partnerships must file Form 1065 or an extension by the 15th day of the third month following the close of the tax year. For calendar-year partnerships, this means Form 1065 or Form 7004 must be filed by March 15. Previously, the due date was April 15. A timely filed Form 7004 grants a partnership a six-month extension to file.
Recognizing that many partnerships were not aware of this law change, the IRS issued Notice 2017-47
, which grants relief for certain penalties imposed for the first taxable year of any partnership that began after Dec. 31, 2015. The following conditions must be satisfied in order to obtain relief:
The partnership filed Forms 1065, 1065-B, 8804, 8805, 5471, or other forms required to be filed with the IRS, and furnished copies (or Schedules K-1) to the partners, by the date that would have been timely prior to the change in law (the 15th day of the fourth month following the end of the tax year, or April 18, 2017, for calendar year partnerships); or
- The partnership filed Form 7004 to request an extension of time to file by the date that would have been timely prior to the change in law and subsequently files the return with the IRS and furnishes copies (or Schedules K-1) to the partners by the 15th day of the ninth month following the end of the tax year, or Sept. 15, 2017, for calendar year partnerships.
Notice 2017-47 did not however, include specific guidance related to regulatory elections that may have been made late as a result of those late-filed partnership tax returns. Notice 2017-71 treats acts by partnerships, REMICs, or any other entity that may be required to file Form 1065, which did file a Form 1065 as otherwise timely prior to the change in law by Congress in 2015, as being timely.
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