The IRS recently announced broad-based penalty relief for many taxpayers in Notice 2022-36. The penalty relief covers certain tax returns for the 2019 and 2020 tax years.
The relief is automatic for eligible returns and taxpayers do not need to apply. If the IRS has previously assessed a late-filing penalty, it will be abated; and if a taxpayer has previously paid a penalty covered by this relief, the IRS will issue a credit or refund. According to the IRS, 1.6 million taxpayers will receive relief and many of the payments will be issued by the end of September 2022.
The relief does not apply to taxpayers who filed a fraudulent return, accepted an offer-in-compromise, entered into a closing agreement with the IRS, or had penalties assessed by a court.
It is important to note that this penalty relief only applies to certain delinquent returns filed on or before September 30, 2022.
To discuss this information in more detail, contact a member of our Tax team today.
Article written by:
Bart Hickey, CPA
Senior Manager, Tax & Business Advisory Services