Penalty relief deadline fast approaches for 2019, 2020 tax returns
The deadline for late-filing penalty relief for 2019 and 2020 tax returns is September 30th, a date the IRS reaffirmed Friday. "We thought carefully about the type of penalties, the period covered, and the duration before granting this penalty relief. We understand the concerns being raised by the tax community and others about the September 30 penalty relief deadline," IRS Commissioner Chuck Rettig said in a news release. "Given planning for the upcoming tax season and ongoing work on the inventory of tax returns filed earlier this year, this penalty relief deadline of September 30 strikes a balance. It is critical to us to not only provide important relief to those affected by the pandemic, but this deadline also allows adequate time to prepare our systems and our workstreams to serve taxpayers and the tax community during the 2023 filing season." Relief for the 2019 and 2020 tax years applies to forms in both the Form 1040 and 1120 series, as well as others listed in Notice 2022-36. The IRS estimates that 1.6m taxpayers who already paid late-filing penalties related to their 2019 and 2020 returns will automatically receive refunds or credits totaling $1.2bn.
Journal of Accountancy