Forms 5471, 5472, 3520 Partial Penalty Relief Still Available for 2019 and 2020 Returns

IRS Notice 2022-36 provided relief for certain taxpayers from certain failure to file penalties and certain international information return penalties with respect to tax returns for tax years 2019 and 2020 that are filed on or before September 30, 2022.

Post Sep 30, 2022 Options

Taxpayers who missed the September 30 filing deadline for returns covered by Notice 2022-36 should immediately engage the help of a trusted tax advisor to file their returns as quickly as possible and take advantage of the IRS’ partial penalty relief. For taxpayers whose returns are not listed in the IRS’ notice, options for penalty relief may be more limited; counsel from a tax professional will be necessary to determine the proper course of action.

Partial Penalty Relief Still Available

The IRS declined to extend the filing period or expand relief to the forms listed by the AICPA. In a statement, IRS Commissioner Chuck Rettig said the IRS understood the concerns of taxpayers and practitioners, but needed to keep the September 30 deadline so it can prepare for the upcoming 2023 tax filing season.

However, taxpayers who missed the September 30 deadline may still receive partial penalty relief for the returns listed in Notice 2022-36. In the same statement, the IRS explained that taxpayers who file for the first few months after September 30 will be eligible for partial relief.

According to the IRS, failure to file penalties for eligible returns filed after the deadline will start accruing on October 1, 2022, not the return’s original due date. However, failure to pay penalties and interest will accrue based on the return’s original due date.

Post Sep 30, 2022 Options

Taxpayers who missed the September 30 filing deadline for returns covered by Notice 2022-36 should immediately engage the help of a trusted tax advisor to file their returns as quickly as possible and take advantage of the IRS’ partial penalty relief.

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