Procedurally Taxing: When Is a Late Return Not Really “Late”?? – Part 1 (December 3, 2021)

Bob Probasco, Senior Lecturer and Director Tax Dispute Resolution Clinic, has made available for download his article, “When Is a Late Return Not Really “Late”?? – Part 1” published on the Procedurally Taxing blog. The article begins as follows:

The IRS released a legal memo recently on an issue I had never thought of before.  Would a tax return by a foreign corporation claiming a refund, filed after the normal filing date, be considered “late,” when the corporation did not realize by the filing deadline that it had a filing obligation at all?  That has implications for how much interest the IRS must pay on the refund.  Les wrote a great post about it.  As I reviewed the memo and related cases, though, I had some nagging questions that Les didn’t have time to address.  (The memo was released on Friday and Les’s post was up early Monday, before I saw the memo itself on Tax Notes Today.)  So, here I am.

Part 1 provides some additional background from the previous court cases and then the recent IRS legal memo.  Part 2 then moves on to those questions – I always have questions – and some very tentative possible answers: this memo may not only be wrong but also apply more broadly than realized. 

Click here to view Bob Probasco’s summary of “When Is a Late Return Not Really “Late”?? – Part 1.”

Posted by Bennett Mansour, Associate Editor, Wealth Strategies Journal

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