Discussion:Late Payment Penalty-Dispute on filing date
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Discussion Forum Index --> Tax Questions --> Late Payment Penalty-Dispute on filing date
| 19 June 2007 | |
| Hello,
My company received a notice from the NYC Dept of Finance. They say our payment was not paid on time because the post office stamp says Mar 16, 2006 (payment was due Mar 15, 2006). However, the postage stamp on the envelope is dated Mar 15, 2006, which would make the payment not late. Does anyone have any cases or something from the IRS, NYS or NYC that we could use to support our argument that the payment is not late. Thank you, HLD, JD | |
| 19 June 2007 | |
| Is the post office postmark stamp the 16th? Many ppl have postage machines and can put postage on an envelope per a certain date, but if the Post Office did not postmark it prior to the 16th, then indeed it is late. | |
| 19 June 2007 | |
| They follow the RUBBER Post mark and not the date ont he stamp. | |
| 19 June 2007 | |
| Private postage machines don't count with them.
I had an instance several years ago where I was mailing extensions on the due date in NYC. My employer sent me to the corner mail box before the 3pm pick-up. There was also a 5pm pick up. Both the fed and state extensions were fine. We did however get a notice that the extension to NYC was late and would not be honored. When we questioned it, they produced the envelope which was postmarked the following day at 12:30am! It didn't get through the canceling machine on time. | |
| 20 June 2007 | |
| While I agree in this case, the USPS postmark controls and your client is out of luck, I do disagree with the poster who writes:
"Private postage machines don't count with them" That is simply NOT true. While I would never advise a client to use anything other than USPS or the designated carriers, the fact remains that PPM can be used (though at the peril of the taxpayer). Regulation ยง301.7502-1(c)(1)(iii)(B) gives authority to using a PPM but with STRICT conditions. PPM do count but certainly not as well as the USPS or the designated carriers. | |
| 21 June 2007 | |
| Peyton,
By "Private postage machine", I think he is referring to something like Pitney Bowes where you stamp your own postage on an envelope. I do not think he was referring to using a private postal carrier such as FedEx. | |
| 21 June 2007 | |
| Hld: If NYC sticks to their guns, try to find out if they have a "reasonable cause" exception to penalties. The IRS waives most penalties if you write them a letter showing a good excuse; maybe NYC will do the same. Send them a letter stating you exercised ordinary business care in filing/paying on time, but through no fault of your own (post office error), the return didn't get filed/paid on time. Also tell them that you have always filed and paid timely in the past. Also, they may have a "one time waiver" of penalty (I know GA Department of Labor, Department of Revenue has this). Good luck. | |
