The IRS has announced that it will provide automatic relief from some failure to file penalties and information reporting penalties for 2019 and 2020 taxable years. The IRS will determine whether a taxpayer qualifies and will automatically refund, or credit the taxpayer’s account, as appropriate. No action on the taxpayer’s part is required.

To be eligible for the relief for the 2019 and 2020 taxable years, eligible entities must have filed their returns by September 30, 2022. The relief applies to individual income tax returns, fiduciary income tax returns,  partnership income tax returns, C and S corporation income tax returns, exempt organization income tax returns, and various foreign information reporting forms.

Taxpayers may be eligible for the automatic information reporting penalty relief for failure to timely file information returns (Forms W-2, 1099, etc.) as well.

Contact us if have any questions.