If you filed your 2019 or 2020 tax returns late, you’re not alone. Millions of individuals and businesses face this challenge. The good news? The IRS is taking steps to provide relief. Not only is it refunding many penalties, but it’s also making the process seamless for eligible taxpayers.
Nearly 1.6 million taxpayers will automatically receive more than $1.2 billion in refunds or credits. This substantial effort by the IRS aims to ease the burden on those who face challenges in meeting their tax deadlines. The penalty relief is automatic for those who qualify, eliminating the need for individuals or businesses to initiate a request for a refund.
This relief encompasses various forms, including those in the Form 1040 and 1120 series, along with others listed in Notice 2022-36 on IRS.gov. To qualify, any eligible income tax return must be filed on or before September 30, 2022. The IRS is extending its support not only to individual taxpayers but also to banks, employers, and other businesses required to file various information returns, such as those in the 1099 series.
For those seeking relief, the notice specifies that eligible 2019 returns must have been filed by August 1, 2020, and eligible 2020 returns must have been filed by August 1, 2021. This timeline ensures that those who meet the criteria can benefit from automatic relief.
The relief process is straightforward, with the IRS actively working to deliver refunds to eligible taxpayers. Most of the $1.2 billion in refunds will be distributed by the end of September. This means eligible taxpayers don’t need to apply for the refund—penalties, if already assessed, will be abated, and if already paid, the taxpayer will receive a credit or refund.
This initiative demonstrates the IRS’s commitment to supporting taxpayers who face challenges in meeting their tax obligations. The automatic refunding of penalties acknowledges the difficulties many encountered and aims to provide financial relief swiftly.
If you require more information or have specific questions about this IRS initiative, WM Accounting & Bookkeeping is here to help. Contact our team, and we’ll assist you in navigating through the details and addressing any concerns you may have. Your financial well-being is our priority.
