AICPA Urges Congress to Make Internal Revenue Code Section 9100 Relief Available for Tax Elections with Statutory Deadlines

January 28, 2015

Hour glassThe American Institute of CPAs on January 23 wrote top tax lawmakers urging them to provide IRS the authority to grant relief in appropriate situations when taxpayers miss a statutory deadline or make an error in making an election.  Some of the many tax elections available to taxpayers permit administrative relief under section 9100 of the Internal Revenue Code if the election is made late or it wasn’t executed correctly because the deadlines were established in Treasury regulations, but often the elections with deadlines set by statute do not offer the same relief. 

The AICPA wrote that relief under section 9100 “is extremely valuable for taxpayers who miss the opportunity to make certain tax elections” and that “Congress should consider making section 9100 relief available for all tax elections, whether prescribed by regulation or statute.”

In its letter, the AICPA listed 26 elections (not all-inclusive) for which section 9100 relief is not currently granted because the deadline for claiming such elections is set by statute.

In order for IRS to grant relief under section 9100, IRS must have authority to do so and taxpayers must show that they acted reasonably and in good faith and that the grant of relief will not prejudice the interests of the government.