Corporate e-file Penalty Oversight Committee
The Service has created a Corporate e-file Penalty Oversight Committee to ensure uniform, nationwide application of penalties directly related to the failure to electronically file as required by Temp. Treas. Reg. §§ 301.6011-5T and 301.6037-2T. In response to concerns expressed by taxpayers affected by the regulations, IRS formed this Committee to ensure consistent assertion of any penalties directly related to the failure to e-file and their application in a reasonable manner.
The Committee consists of representatives from Large Business and International (LB&I), Counsel, and Appeals. The Committee will monitor and gather information on the application of any penalties directly related to the failure to e-file corporate and subchapter S income tax returns. The goal of the Committee is to ensure uniform, nationwide application of any penalties directly related to the failure to e-file corporate and subchapter S income tax returns. For that purpose, the Committee will review all cases in which LB&I Field personnel are considering asserting a penalty. The Committee also will collect data relating to cases in which a taxpayer required to e-file did not, and penalties were not recommended. This monitoring function will enable the Committee to evaluate the application of the penalties by LB&I Field and to share information within the Service.
The Committee is not a forum for taxpayers to appeal the Field’s preliminary recommendation that a penalty be imposed. Regular administrative and judicial procedures are available for appeals. Rather, the Committee’s review function is an internal procedure related to the Service’s uniform administration of Temp. Treas. Reg. §§ 301.6011-5T and 301.6037-2T. If a penalty is asserted directly related to the failure to e-file, the taxpayer may use regular administrative and judicial procedures for appeal.
Return to: e-file for Large Business and International