Businesses Unable to Deposit Taxes May Still Get Penalty Relief


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FL 2004-11 / NFL 2004-15, Aug. 23, 2004
(Updated 8/24/04 to add one county)

FT. LAUDERDALE / JACKSONVILLE — The Internal Revenue Service announced today that it will grant federal tax deposit penalty relief to storm-struck businesses on a case-by-case basis.

In the aftermath of Hurricane Charley, the IRS granted various filing and payment extensions until Oct. 15, 2004, to taxpayers in the 26-county disaster area. Although these extensions did not apply to deposits of employment or excise taxes, the IRS said it would abate penalties for businesses that made these deposits by August 23, 2004.

Noting that some parts of the disaster area are still without electricity, the IRS today said that affected taxpayers still unable to make their deposits may ask for penalty waivers when they file the related tax returns. They should put “Bonnie/Charley” in red ink at the top of the returns and attach a request for penalty abatement due to reasonable cause, briefly explaining how the storm prevented them from making their deposits — loss of power, physical damage, injuries, or whatever else affected them.

Related item: IRS Grants Tax Relief for Tropical Storms' Victims