Ask The California Employment Tax And Payroll Tax Attorney – IRS To Automatically Forgive Late Filing Penalties For Taxpayers Effective By Covid
By Robert S. Schriebman
2022
Introduction
On August 25, 2022, the IRS formally announced a broad-based penalty relief program for taxpayers impacted by COVID. The relief applies to failure to file penalties, and certain international information return penalties for the tax years 2019 and 2020 providing those returns are filed on or before September 30, 2022. For those taxpayers who have already paid late filing penalties, the IRS will be issuing refunds. This will be happening automatically and there is no necessity on the part of any taxpayer to affirmatively file for any relief.
The IRS will not impose additions to tax under Code § 6651(a)(1) for failure to file the following tax returns:
- Form 1040, US Individual Income Tax Return, and others in the series;
- Form 1041, US Income Tax Return for Estates and Trusts, and others in the series;
- Form 1120, US Corporation Income Tax Return, and others in the series (including 1120S returns);
- Form 1066, US Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return;
- Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation and Form 990-T, Exempt Organization Business Income Tax Return (and Proxy Tax under Code §6033(e)).
The relief is only for late filing penalties. There is no relief for late payment penalties. Penalties relating to late payment for 2019 and 2020 taxes will remain in effect.
Late filing penalty relief will occur automatically and there is no affirmative action is required on the part of the taxpayer.
REMEMBER…YOUR 2019 AND 2020 TAX RETURNS MUST BE FILED NO LATER THAN SEPTEMBER 30, 2022.
Conclusion
Because of the crucial deadline of September 30, 2022, make sure you file your return in a manner to be able to prove timely filing. Use a recognized carrier such as Fed Ex or UPS or Priority Mail. If you are going to send your return by certified mail, make sure you get a “round stamp” from the post office.
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Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.
Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.
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