Rev. Proc. 92-70: Filing Relief Procedures and Key Requirements

Rev. Proc. 92-70 provides a structured pathway for taxpayers seeking relief from specific filing obligations, serving as a critical resource for navigating complex tax compliance requirements. The procedure outlines streamlined processes to reduce penalties and mitigate IRS scrutiny.

Eligibility Under This Procedure

Eligibility requires taxpayers to meet specific criteria. The procedure is designed for those who inadvertently failed to meet filing requirements, not for willful neglect. Taxpayers must not be under an active IRS examination and should have a history of compliance, typically evidenced by filing all required returns for the preceding three years.

Applicants must submit a detailed statement explaining their failure to file, supported by documentation such as medical records or evidence of natural disasters. These submissions are evaluated case by case to determine if relief is appropriate.

Filing Instructions

To request relief, taxpayers must prepare a comprehensive submission package with all required documentation and compliance history forms. Accuracy and completeness are critical to avoid delays. The package should be sent to the appropriate IRS office via certified mail or secure electronic filing to ensure receipt.

While there is no fixed deadline, prompt filing when qualifying circumstances arise is recommended to demonstrate a proactive approach. Maintaining communication with the IRS can help clarify the request’s status and identify any additional required documentation.

Required Records and Forms

Applications for relief hinge on thorough documentation. Tax returns or forms that were missed or filed incorrectly must be included, along with supporting schedules and attachments. Additional documentation, such as financial statements or third-party records, should validate the taxpayer’s circumstances and substantiate their request.

Amendments and Corrections

Corrections are necessary when errors or discrepancies are found in the initial submission. Taxpayers should promptly address these to preserve the integrity of their request. Mechanisms outlined in the Internal Revenue Code, such as Sections 1311 through 1314, provide procedures for making adjustments to closed tax years.

Potential Penalties

Although Rev. Proc. 92-70 offers relief, taxpayers should remain aware of potential penalties if their submission is denied or fails to meet procedural requirements. Penalties may include late filing and late payment charges, as well as accuracy-related penalties under IRC Section 6662. Interest on unpaid taxes and penalties accrues daily, potentially leading to significant financial consequences.

Coordination With Other Guidance

Rev. Proc. 92-70 often intersects with other IRS programs and guidance. For example, it may overlap with the First-Time Penalty Abatement program, which provides relief for taxpayers with a clean compliance history. Taxpayers may also reference the reasonable cause exception, which allows for penalty relief due to uncontrollable circumstances.

Taxpayers should evaluate how this procedure interacts with international tax compliance requirements, such as FATCA or the Streamlined Filing Compliance Procedures. For instance, a taxpayer who failed to file Form 8938 must assess whether Rev. Proc. 92-70 or another program better addresses their noncompliance. Analyzing these intersections helps taxpayers select the most suitable relief mechanism while avoiding conflicting submissions.