If You Are Late With 2019 and 2020 Returns – Hurry Up and File

  • Agribusiness
  • 8/24/2022

The IRS just announced they are automatically waiving almost all penalties paid on 2019 and 2020 returns filed late. But if you have not filed, makes sure to do it ...

The IRS released Notice 2022-36 providing automatic relief for almost all 2019 and 2020 tax returns filed late. However, if you have not filed yet, you need to file by September 30, 2022 to get automatic relief.

The returns covered by this relief is very broad. For example all Form 1040s, Form 1041 – trust returns, From 1065 – partnership returns, 1120 and 1120-S – corporate tax returns. Plus almost any special returns such as a cooperative return.

Any information return such as a Form 1099 et al filed before August 1, 2020 for 2019 items and before August 1, 2021 for 2020 items is automatically covered.

Penalties related to fraud plus penalties accepted in an offer in compromise are excluded.

The IRS is very specific that this will be automatic and suggest (warn) taxpayers not to call them. Based on our experience lately with calling the IRS, this is a good suggestion. I would rather spend 4 hours at the local cable company or cell phone company than attempt a phone call with the IRS.

Perhaps this is a good PR attempt now that they have gotten their extra $80 billion since this gesture may cost them part of that extra money (it could easily exceed $1 billion or more).

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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