In an effort to free up resources to address a huge backlog of returns to process and other pending issues, the IRS announced major relief for most taxpayers with certain failure to file penalties and International Information return penalties for tax returns for the tax years 2019 and 2020 that are filed before September 30, 2022. Also forgiven will be certain information return penalties that were assessed on some 2019 returns that were filed before August 1, 2020 and 2020 returns that were filed before August 1, 2021. This waiver will result in an abatement of penalties assessed for the returns. This is very good news for the 1.6 million businesses and individuals who filed late returns for 2019 and 2020 and will result in the waiver of over $1.2 billion of penalties according to Accounting Today.
There are certain situations in which the relief will not apply. If you need more information, please contact us.
Submitted by Lois S. Fried, CPA, CFE, CVA, ABV