Tax Alert: Tax Penalties Assessed for Late Forms 5471 Beginning in January
11/06/2008
Beginning Jan. 1, 2009, the Internal Revenue Service will automatically assert appropriate penalties on late filed Form 5471, according to a notice posted to the IRS Web site Oct. 22.
The IRS said that in August, it began issuing letters to some taxpayers to alert them to an upcoming procedural change relative to the automatic assessment of penalties. These letters were issued to taxpayers who may not have timely filed their corporate return and/or not timely filed their Form 5471, the notice said.
Internal Revenue Code Section 6038(b)(1) provides for a monetary penalty of $10,000 for each Form 5471 that is filed after the due date of the income tax return (including extensions) or does not include the complete and accurate information described in Section 6038(a), the notice said. The IRS is encouraging taxpayers to submit delinquent Form 5471 prior to Jan. 1, the notice said.
For additional information on this matter, please contact your J.H. Cohn tax professional at 877-704-3500.
Circular 230 Notice: In compliance with U.S. Treasury Regulations, the information included herein (or in any attachment) is not intended or written to be used, for the purpose of i) avoiding penalties the IRS and others may impose on the taxpayer or ii) promoting, marketing or recommending to another party any tax related matters.