Latest News, Local News, International News, US Politics, Economy

The IRS Abolishes Penalties for 2019 and 2020, But?

The info offers penalty relief to taxpayers for some late-filed 2019 and 2020 tax returns and information returns, but only if the qualified returns are submitted on or by September 30, 2022.

Additionally, the penalty reduction does not apply to all types of returns. The IRS will automatically waive all applicable penalties specified in the Notice if the late returns are submitted before September 30, 2022.

The taxpayer won’t be required to submit a request for relief or a justification for the late filing. If the IRS has previously imposed penalties for those years, the Notice stipulates that they will be waived and that refunds will be sent.

Only the fines clearly mentioned in Notice 2022-36 will qualify for taxpayer relief. Penalties for failure to submit the following forms, among others, are eligible for relief:

The forms 1040, S. Individual Income Tax Return, 1040-C, U.S. Departing Alien Income Tax Return, 1040-NR, U.S. Nonresident Alien Income Tax Return, 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, 1040 (PR), Federal Self-Employment Contribution Statement for Residents of Puerto Rico, 1040-SR, U.S. Tax Return for Seniors, and Form 10

Form 1041, the U.S. Income Tax Return for Estates and Trusts; Form 1041-N, the U.S. Income Tax Return for Electing Alaska Native Settlement Trusts; and Form 1041-QFT, the U.S. Income Tax Return for Qualified Funeral Trusts

Forms 1120, S. Corporation Income Tax Return, 1120-S, U.S. Income Tax Return for an S Corporation, 1120-C, U.S. Income Tax Return for Cooperative Associations, Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, Form 1120-FSC, Form 1120-H, U.S. Income Tax Return for Homeowners Associations, Form 1120-L, U.S. Life Insurance Company Income Tax Return, and Form 11

politics

The S. Return of Partnership Income, Form 1065

Tax Return for Real Estate Mortgage Investment Conduit (REMIC), Form 1066, S.

Forms 990-PF, Return of Private Foundation, Form 990-T, Exempt Organization Business Income Tax Return (including Proxy Tax Under Section 6033(e)), and Form 4947(a)(1) Trust Treated as Private Foundation are all required by law.

Form 5471, Information Return of US Person About Certain Foreign Corporations

A foreign corporation engaged in U.S. trade or business must file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation.

Form 3520, Annual Report to Report Transactions With Foreign Trusts and Receipt of Specific Foreign Gifts

Annual Information Return of a Foreign Trust with a U.S. Owner (Under Section 6048(b)), Form 3520-A

Additionally, the Notice offers banks and other businesses relief for failing to timely file specific information returns by Internal Revenue Code section 6721(a)(2)(A).

For the applicable 2019 information returns to qualify for penalty reduction, they must have been submitted on or before August 1, 2020, and for the relevant 2020 information returns, they must have been submitted on or before August 1, 2021.

Notice 2022-36, in particular, does not offer relief from penalties for failing to pay tax fines, failing to complete Form 8938, Statement of Specified Foreign Financial Assets, or failing to file FBARs.

Additionally, any penalty that is subject to fraud, contained in an accepted offer in compromise, incorporated in a closing agreement, or the result of a finalized legal procedure is not eligible for penalty relief.

Read more:-

To continue assisting taxpayers impacted by the COVID-19 pandemic, the penalty relief under Notice 2022-36 is intended.

Additionally, the IRS should be able to redirect its resources following the difficulties it encountered while functioning during a pandemic to processing overdue tax returns and responding to taxpayer correspondence thanks to the penalty relief.

A tax expert should be contacted by taxpayers who have neglected to file 2019 and/or 2020 tax or information returns to see if they qualify for penalty reduction under Notice 2022-36.

Leave A Reply

Your email address will not be published.