In Notice 2022-36, the Internal Revenue Service (IRS) announced it will issue automatic penalty relief for certain returns required to be filed for the 2019 and 2020 tax years.
Taxpayers must file the eligible 2019 and 2020 returns by September 30, 2022 to qualify for the relief. For taxpayers who received a notice for a late filing penalty, those will be abated. Furthermore, there is a potential refund for penalties already paid. The IRS is expected to release additional clarity on the refunds available.
Tax Returns Eligible for Penalty Relief
The IRS will abate failure-to-file penalties for the following forms:
The penalty relief mentioned above does not apply to situations where fraud was involved, or if a penalty was already settled under an offer in compromise, a closing agreement or a judicial proceeding.
If you have any questions about this relief or received a penalty noticed for failure to file 2019 and/or 2020 tax returns, please consult with your tax advisor.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
Subscribe to our newsletters to get inside access to timely news, trends and insights from Smith + Howard.