Penalty Relief for Partnerships That Filed Late in 2017

The IRS recently issued guidance providing penalty relief for certain partnerships that did not file the required returns in 2017 for the 2016 tax year.

Notice 2017-47 provides penalty abatement for these partnerships only if certain circumstances apply:

1. The partnership filed the returns with the IRS and furnished Schedule K1 to its partners (as appropriate) by the date that would have been timely, or
2. The partnership filed Form 7004 to request an extension by the date that would have been timely before the deadline change.

This is a great chance to clean up tax liability exposure.