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September 25, 2020
2020-2329

IRS says tax returns impacted by computer outage will be accepted if filed by September 17, 2020

The IRS announced September 24, 2020, that it will treat as timely filed any returns and accompanying elections that were submitted by September 17, 2020, if those returns could not be filed by the September 15, 2020, due date because of the external software outage that occurred that day.

On September 15, 2020, a third-party e-filing system had technical problems that resulted in some filers being unable to timely file their returns with the IRS. The problem was fixed the following day. As a result, many filers were not able to submit their returns until September 16, 2020.

The outage impacted returns due September 15, such as Forms 1065 and 1120-S for calendar-year taxpayers that requested an automatic six-month filing extension.

Implications

Taxpayers impacted by the e-filing system outage may still receive a penalty notice imposing late filing penalties. So long as the affected returns were filed by September 17, 2020, penalty relief should be available by responding to the IRS and citing the September 24, 2020 memo as grounds for relief.

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Contact Information
For additional information concerning this Alert, please contact:
 
Tax Policy and Controversy
   • John DiIorio (john.diiorio@ey.com)
   • Melissa Wiley (melissa.wiley@ey.com)
 

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