/>iThe 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:
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Personal Income Tax Returns (Series 1040)
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Corporate Income Tax Returns (Series 1120)
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Form 1065, U.S. Return of Partnership Income
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Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return
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Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, if attached to a late filed Form 1065 or 1120
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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
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Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts
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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.
