On November 30, 2017, IRS issued a notice expanding earlier guidance it had issued offering penalty relief to partnerships for certain late filed returns. In Notice 2017-71, IRS stated that any act (except those pertaining to interest) performed for the 2016 taxable year of a partnership, REMIC, or certain other entities will be treated as timely for all purposes under the Internal Revenue Code, as long as the act would have been timely if the Surface Transportation Act had not changed the due date for partnership returns. This Notice expands and supersedes the relief provided in Notice 2017-47.
For example, the Notice reiterates that if a calendar year partnership filed a Form 1065 in 2017 that would have been timely filed under the old deadline (April 18), with extensions, the partnership will not be subject to penalties, even if the Form was filed after the new deadline (March 15) imposed by the Surface Transportation Act. The Notice also clarifies that the same relief applies to other actions, such as making elections, contributing to an employee pension plan, or paying tax, by the due date of its return, either with or without regard to any extension of time to file, depending upon the particular action. Although the penalty would be abated, the Notice makes clear that entities would still be liable for any interest due if 2016 tax was paid after the new due date.