$1.2 Billion in penalties to be refunded to taxpayers
On August 24, the Internal Revenue Service (IRS) released Notice 2022-36, Penalty Relief for Certain Taxpayers Filing Returns for Taxable Years 2019 and 2020 (the “Notice”). The notice provides tax relief for certain taxpayers with failure to file penalties and international information return (IIR) penalties connected to tax returns for tax periods 2019 and 2020.
As the nation continues to feel the adverse effects of the COVID-19 pandemic, the IRS hopes to help struggling taxpayers with this tax relief program. According to the IRS, an estimated $1.2 billion in penalties will be waived for 1.6 million taxpayers.
In order for individual taxpayers to qualify for relief from failure to file penalties, eligible income tax returns must be filed on or before September 30, 2022. If you are missing returns, it is vital to file by this deadline or you will not receive any relief. Late filing penalties can stack up until they reach 25% of your unpaid tax liability, meaning the waiver of these penalties will provide taxpayers, including those with large tax amounts due, with major savings.
For businesses to qualify for relief from IIR penalties, Tax Year 2019 returns must have been filed by August 1, 2020, and Tax Year 2020 returns by August 1, 2021.
Eligible taxpayers do not need to apply to be granted the automatic penalty relief. The attorneys at Wiggam Law are working through reviewing eligible matters and notifying clients of their abated penalties. If you have questions regarding the Notice or believe you may be eligible for relief, please contact the experienced attorneys at Wiggam Law by calling us at (404) 233-9800 or schedule a consultation by filling out our contact form.