Maria and Miguel Blanco are in the midst of negotiating a divorce. Because both parties are unwilling to share any current financial information, their joint Form 1040 for 2018 is not filed until October 31, 2019, when the respective divorce attorneys forced them to cooperate. The Blancos should not be subject to any Federal late-filing penalties, because the reasonable cause exception applies to their family discord.

Question

Quizplus · Accepted Answer

The reasonable cause exception for avoiding late-filing penalties typically does not apply to situations of family discord or divorce negotiations. The IRS expects taxpayers to file their returns on time, regardless of personal circumstances, unless specific criteria for reasonable cause, such as natural disasters or serious illness, are met.

Maria and Miguel Blanco Are in the Midst of Negotiating