As the deadline for Tax Year 2022 approaches, the IRS has sent a reminder about timestamps and e-file.
For additional information, please reference Form 4163.
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Will the timestamp placed in the e-file header be honored as timely filed even if we don’t transmit the return until the next day due to transmission issues, delays or a system outage?
Per Publication 4163, 3.28 Electronic Postmark: If an electronic postmark is created on or before a prescribed deadline for filing, but the return is received by the IRS after the deadline, the return will be treated as filed on the electronic postmark date, if received within two (2) days of the electronic postmark. For a return to be treated as filed on the electronic postmark date, all requirements for signing the return must be met. If a return is rejected, a corrected return must be filed in accordance with the rules for timely filing corrected returns after rejection.
In the event that a customer had payment information included in the e-file, they are receiving rejections saying that the payment date no longer matches the filing date. Will they penalized for the payment date being late given they have to adjust it and re-file?
Per Publication 4163, when a return is rejected on the due date it is recommended the Electronic Funds Withdrawal payment not be transmitted with the return; another payment option should be used. The payment will be applied with the due date of the receipt and not any original electronic post marks. In general, a tax preparation company’s system failures does not constitute reasonable cause relief of failure to file penalties. Filers need to make every effort to file a complete return or extension by the deadline. Please refer to the following page: Penalty Relief for Reasonable Cause | Internal Revenue Service (irs.gov
