IRS Retroactive Penalty Relief

IRS Notice 2022-36 indicates that the IRS will provide automatic retroactive relief for taxpayers who filed returns late for the 2019 and 2020 tax years.

To be eligible for the relief, generally, income tax returns must be filed on or before September 30, 2022, and information returns must have been filed for the 2019 tax year on or before August 1, 2020 and must have filed returns for the 2020 tax year by August 1, 2021.

The relief relates to failure-to-file penalties but not to penalties for the late payment of tax, if any.

Examples of income tax returns listed in Notice 2022-36 as eligible for the relief include Forms 1040, 1041, 1120, 1120S and 1065, along with certain other returns.

The IRS has indicated that eligible taxpayers do not need to contact the IRS to obtain the relief.  Rather, the IRS will automatically abate penalties that have already been assessed and will refund penalties that have already been paid.

The next M + O = CPE® Individual Tax Year-End Workshops are coming up in December and January. If you are not already registered, register here.