November 08, 1999
IRS Will Give Penalty Relief for Y2K-Related Glitches
WASHINGTON - The Internal Revenue Service
announced that it expects to provide 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 Y2K problems beyond their control.
"We recognize that some businesses may be unable to fulfill their tax
obligations because of Y2K-related matters beyond their expectations or control,"
said IRS Commissioner Charles O. Rossotti. "We expect to issue guidance in December
on how we will give penalty relief to these taxpayers."
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. The
taxpayer must have made a good faith effort to become Y2K compliant. When the IRS issues
the guidance, it will post it on its Web site at www.irs.gov.
Business owners may find useful hints on Y2K preparations at the Small Business
Administrations Web site or by calling (toll-free) 1-800-U-ASK-SBA. The Y2K Help Center provides
small businesses and firms with free help, as does the President's Council on Year 2000 at
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