IRS To Offer Relief For Y2K-Related Problems
The IRS will issue guidance next month on penalty relief for taxpayers who took necessary steps to prepare for the date change to the year 2000 (Y2K) but were unable to comply with the tax laws due to problems beyond their control. The guidance will provide key points about how taxpayers can request relief if the IRS assesses penalties for actions resulting from a Y2K-related computer failure. However, the IRS warns that the taxpayers must have made a good faith effort to become Y2K compliant. Check with your tax professional if you need further information from the IRS concerning penalties and Y2K.