REMINDER: Internal Revenue Service Provides Broad-Based Penalty Relief For Certain 2019/2020 Tax Returns Due To The Pandemic
$1.2 billion in penalties being refunded to 1.6 million taxpayers
To help struggling taxpayers affected by the COVID-19 pandemic, the Internal Revenue Service (IRS) issued Notice 2022-36 on August 24, 2022, which provides penalty relief to most people and businesses who filed certain 2019 or 2020 tax returns late.
This penalty relief will be automatic for people or businesses who qualify; there’s no need to call. If already assessed, penalties will be abated. If already paid, the taxpayer will receive a credit or refund.
To qualify for this relief, many eligible income tax and/or information returns must be filed on or before September 30, 2022.
In addition, the IRS will provide penalty relief to banks, employers, and other businesses required to file various other information returns, such as those in the 1099 series. To qualify for relief, the notice states that eligible 2019 returns must have been filed by August 1, 2020, and eligible 2020 returns must have been filed by August 1, 2021.
For details, please see Notice 2022-36 attached hereto.
If you have questions about this or other tax matters, please do not hesitate to contact us.