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By: Rebecca K. Wohltman

The IRS recently announced that it will abate penalties for tax returns 1040 (individual income tax returns), 1120 (corporate income tax returns), 1120S (S corporation income tax returns), and certain other returns for 2019 and 2020.

In order to qualify for the penalty relief, the returns must be filed by September 30, 2022 (earlier filing timelines apply for other returns).

If you already filed your 2019 or 2020 returns but filed them late, you are in luck. Any late filing penalties will be abated (or removed). If you already paid these penalties, the IRS will refund those payments to you. (Note that if you have other balances, the IRS will apply the refund of the penalty to your other outstanding balances.)

The IRS estimates it will be issuing $1.2 Billion to 1.6 million taxpayers as part of this penalty relief effort. It plans to issue refunds to taxpayers who already paid these penalties by the end of September 2022.

If you have not yet filed your 2019 or 2020 tax returns, you have a limited amount to do so and avoid penalties.

Professional Services Disclaimer: Please note that the information presented here is as an educational service, and while it contains information about legal issues, it is not legal advice. No warranty is made regarding the applicability of the information presented to a particular client situation, and the information set forth is not a substitute for original legal research, analysis and drafting for a particular client situation.