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 2010 is not filed until October 31,2011,when the respective divorce attorneys forced them to cooperate.The Blancos should not be subject to any Federal late-filing penalties,because of the reasonable cause exception.

Question

Quizplus · Accepted Answer

The fact that the Blancos were in the midst of negotiating a divorce and unwilling to share financial information does not necessarily qualify as reasonable cause for late filing. The IRS may still impose late-filing penalties, unless the Blancos can demonstrate other circumstances that constitute reasonable cause.

Maria and Miguel Blanco Are in the Midst of Negotiating