December 3, 2022

Volume XII, Number 337


December 02, 2022

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November 30, 2022

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IRS Announces Relief From Penalties On Some 2019 And 2020 Tax Returns

The IRS just announced, in releasing Notice 22-36, that it will be automatically issuing an estimated $1.2 billion in refunds or credits related to failure to file penalties assessed against taxpayers on a broad range of 2019 and 2020 tax and information returns that are filed before September 30, 2022.

Taxpayers who have eligible unfiled returns for the 2019 or 2020 tax year, can still qualify for relief if they file by September 30, 2022. For those taxpayers who have not been compliant with their 2019 and 2020 tax obligations, this is an unprecedented opportunity to file their returns without the fear of a failure to timely file penalty.

Eligible returns include:

  • Personal Income Tax Returns (Series 1040)

  • Corporate Income Tax Returns (Series 1120)

  • Form 1065, U.S. Return of Partnership Income

  • Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

  • Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, if attached to a late filed Form 1065 or 1120

  • Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, if attached to a late filed Form 1065 or 1120

  • Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

  • Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner

Taxpayers who have unfiled 2019 and/or 2020 tax or information returns should act quickly and contact their tax professional to determine if they are eligible for relief. Additionally, taxpayers whose non-compliance spans multiple years, beyond just 2019 and 2020, will want to speak with their advisor about whether this relief is right for them or if they should consider alternative routes to come into compliance with their past tax obligations.

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume XII, Number 242

About this Author

William J. Sanders, Polsinelli PC, Limited Liability Company Matters Lawyer, Tax matters Attorney
Shareholder, Practice Chair

Through over 30 years of practicing law, Bill Sanders has developed broad tax experience in corporate, partnership, limited liability company, complex business transactions, and workout and bankruptcy issues.

As chairman of the firm’s tax practice group and a licensed CPA in Missouri, Bill’s clients range from Fortune 100 companies to family-owned and tax-exempt organizations.

He regularly represents clients nationwide before the Internal Revenue Service at all levels including audits, the Appeals Division and...

Scott S. Ahroni Shareholder Polsinelli PC

Scott Ahroni focuses his practice on Federal, State and Local tax controversies. His particular areas of emphasis are audits, administrative appeals and tax litigation in various courts and tribunals, including the United States Tax Court, United States District Court, New York State Division of Tax Appeals, New York State Tax Appeals Tribunal, New York City Tax Tribunal, New York Department of Labor, Unemployment Insurance Appeal Board, and the New York State Appellate Divisions, First and Third Departments. Examples of his practice include:

Erika L. Colangelo New York Tax Attorney Polsinelli

Erika Colangelo is an Associate at Polsinelli's New York City office. She represents individuals and businesses in all stages of dispute and controversy with the Internal Revenue Service, New York State Department of Taxation Finance, New York State Department of Labor, and New York City Department of Finance, including in audits, collection matters, administrative appeals and tax litigation in courts and tribunals such as the United States Tax Court and the New York State Division of Tax Appeals. Erika uses her tax controversy experience to prepare and negotiate offers...