NJCPA Urges Lawmakers to Push for Targeted Late-Filing Penalty Relief

 – November 24, 2020
NJCPA Urges Lawmakers to Push for Targeted Late-Filing Penalty Relief

The New Jersey Society of CPAs sent the following letter on Nov. 24 to New Jersey's U.S. Senators and House Members urging them to provide targeted penalty relief for late filings and payments resulting from pandemic-related delays. 

We are writing to respectfully request that [Senator/Representative] reach out to the Treasury Department to strongly encourage Treasury and the IRS to provide an expedited process of targeted penalty relief for late filings and payments resulting from delays due to the COVID-19 pandemic. 

On behalf of the 14,000-plus members of the New Jersey Society of CPAs, and along with the AICPA, we ask that you urge the IRS to implement the following measures in response to the pandemic:

  • Provide targeted penalty waiver through the creation of an expedited and streamlined reasonable cause penalty abatement process to taxpayers affected by the COVID-19 pandemic that eliminates the need for written requests;
  • Develop specific coronavirus examples that qualify for reasonable cause abatement and share these examples with all telephone assistors through interim guidance; and
  • Develop a dedicated telephone number, or dedicated prompt, for taxpayers or their advisors to call to request coronavirus-related penalty relief.

The accounting profession has shared its recommendations with the IRS, but unfortunately, the IRS has yet to step in to help remove the burden of requesting targeted relief.

The recommendations provided by the profession are fair, reasonable, practical and address the issues that taxpayers and tax practitioners are currently struggling with daily. Additionally, these practical measures would help the IRS manage and reduce an already overwhelming backlog of mail that has slowed operations and led to unnecessary compliance actions against taxpayers.

Please urge Treasury and the IRS to ease this burden for taxpayers across the country.

If you have any questions or need more information, please contact me. Thank you for your commitment to America’s economic recovery during these unprecedented times.