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HomeFreelancer$1.2 Billion in IRS Penalty Aid Refunds Coming for Sure 2019 and...

$1.2 Billion in IRS Penalty Aid Refunds Coming for Sure 2019 and 2020 Tax Returns


This text is posted with permission from our accomplice IRS and initially appeared on the IRS weblog at: https://www.irs.gov/newsroom/1-point-2-billion-dollars-in-irs-penalty-relief-refunds-coming-for-certain-2019-and-2020-tax-returns

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To assist struggling taxpayers affected by the COVID-19 pandemic, the IRS not too long ago issued Discover 2022-36, which offers penalty aid to most individuals and companies who filed sure 2019 or 2020 returns late.

To qualify for this aid, any eligible earnings tax return, not already filed, have to be filed on or earlier than September 30, 2022

The company can be taking a further step to assist those that paid these penalties already. Practically 1.6 million taxpayers will routinely obtain greater than $1.2 billion in refunds or credit. Many of those funds will exit by the tip of September.

Which returns are eligible

The aid applies to the failure to file penalty. The penalty is often assessed at a charge of 5% monthly, as much as 25% of the unpaid tax when a federal earnings tax return is filed late. It applies to types in each the 1040 and 1120 sequence, in addition to others listed within the discover.

Small companies, employers and different companies may additionally be eligible

As well as, the IRS is offering penalty aid to small companies, employers and different companies required to file varied data returns, similar to these within the 1099 sequence. To qualify for aid, eligible 2019 returns should have been filed by August 1, 2020, and eligible 2020 returns should have been filed by August 1, 2021.

A 2019 return will likely be thought-about well timed for functions of aid if it was filed by August 3, 2020, and a 2020 return, if it was filed by August 2, 2021. Taxpayers ought to evaluation discover 2022-36 for full particulars on the knowledge returns which are eligible for aid.

The discover additionally offers particulars on aid for sure worldwide data return penalties which are assessed systemically or throughout return processing. To qualify, any eligible tax return have to be filed on or earlier than September 30, 2022. Nevertheless, this aid doesn’t apply if the penalty was assessed as a part of an examination.

Which tax returns will not be eligible

Penalty aid is just not obtainable in all conditions, similar to the place a fraudulent return was filed, the place the penalties are a part of an accepted supply in compromise or a closing settlement, or the place the penalties had been lastly decided by a courtroom. For full particulars, taxpayers ought to learn Discover 2022-36, obtainable on IRS.gov.

Different penalties, such because the failure to pay penalty, will not be eligible. Nevertheless, taxpayers might use current penalty aid procedures for penalties not eligible beneath Discover 2022-36. Extra details about current procedures is offered on the Penalty Aid web page of IRS.gov.

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