On August 24, 2022, the IRS announced that it will grant relief for failure-to-file (FTF) penalties on 2019 and 2020 federal tax returns, under Notice 2022-36. Of those returns, includes Forms 1040, 1041, 1120, 990-PF, 990-T.
If you have yet to file your 2019 or 2020 income tax return, and are required to do so, file now! Taxpayers who file any of these returns on or before September 30, 2022, will not be subject to penalties for late filing.
Taxpayers do not need to request relief, the penalties within the scope of the IRS’s relief will be automatically abated, refunded, or credited, as appropriate. If you have already filed and received a bill for a failure-to-file penalty on one or more of the tax returns listed above, it will be reversed, even if you have requested abatement and were previously denied. If you’ve already paid the penalty, you can expect a refund, which will generally be issued as a paper check. Read more written by the journal of accountancy.