IRS is Forgiving Late Filing Penalties
The Internal Revenue Service recently announced blanket forgiveness of late filing penalties for 2019 and 2020 tax returns. Tax filings for these years were disrupted by COVID and dysfunction at the IRS.
This new form of COVID relief is expected to cost the US Treasury $1.3 billion.
The IRS is sending refund checks to taxpayers who paid the penalties unless they owe the IRS other amounts. It isn’t necessary to file a claim or call the IRS. The checks will be sent out automatically to taxpayers who qualify.
To qualify for this relief, the 2020 and 2021 tax returns must be filed by September 30, 2022. The American Institute of Certified Public Accountants is urging the IRS to extend the deadline for the forgiveness program. This will be a popular program and I predict the deadline will be extended.
The penalty relief only applies to late filing penalties for 2019 and 2020 returns. The blanket forgiveness does not apply to late payment penalties or other types of penalties.
- Mark Gleason CPA