IRS issues broad penalty waiver for late 2019 and 2020 filings

August 24, 2022

The IRS this morning announced (Notice 2022-36) an extensive waiver for penalties for late filing 2019 and 2020 returns. Returns covered include, among others 

  • Form 1040, U.S. Individual Income Tax Return;
  • Form 1040-C, U.S. Departing Alien Income Tax Return;
  • Form 1040-NR, U.S. Nonresident Alien Income Tax
  • Form 1041, U.S. Income Tax Return for Estates and Trusts;
  • Form 1065, U.S. Return of Partnership Income
  • Form 1120-S, U.S. Income Tax Return for an S corporation
  • Form 1120, U.S. Corporation Income Tax Return;
  • Form 1120-C, U.S. Income Tax Return for Cooperative Associations;
  • Form 1120-F, U.S. Income Tax Return of a Foreign Corporation;
  • Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation;
  • Form 990-T, Exempt Organization Business Income Tax Return

The waiver also covers late penalties for foreign tax disclosures for those years, including

  • Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, and or Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, is attached to a late-filed Form 1120 or Form 1065;
  • Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, and Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner.

This relief applies if the returns are filed on or before September 30, 2022.

The relief also covers a broad range of information returns, including many 1099s and information returns related to health insurance coverage. 

There are exceptions, including returns subject to fraud penalties. 

Eide Bailly will provide a more complete analysis of this notice in the coming days. If you have questions, contact your Eide Bailly tax professional. 


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