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.
Posted by Bennett Mansour, Associate Editor, Wealth Strategies Journal