​Late Tax Filers Get Some IRS Relief

If you filed certain forms late for the 2019 and 2020 tax years, the IRS might have some good news for you.

According to a recent notice, the agency expects to refund about $1.2 billion to an estimated 1.6 million taxpayers by the end of this month. This automatic relief effort is part of the government’s efforts to help taxpayers still struggling in the wake of the pandemic.

So, what types of returns and forms qualify? Here’s a high-level breakdown of the 2019 and 2020 returns:

• Form 1040 (personal income tax return)
• Form 1120 (corporate tax return) series
• Form 1065 (partnership return)
• Form 1120-S (subchapter S corporation return)
• Foreign information forms Form 5471, 5472, 3520, and Form 3520-A
• Form 1099 series (To qualify for this relief, you’ll need to have filed your returns by Aug. 1, 2020, for 2019 returns and Aug. 1, 2021, for 2020 returns.)

If you haven’t filed your returns for 2019 or 2020, you need to hurry. You’ll need to file those qualifying forms listed above by Sept. 30, 2022, to qualify for the relief.

If you’ve faced penalties for late filings, the IRS will refund or credit those penalty payments.

There are exceptions to the relief, including:

• No relief for fraudulent returns.
• No relief for court-ordered penalties.
• No relief if the penalties are part of an offer in compromise or closing agreement.
• No relief in situations where the failure-to-pay penalty applies.

If you have questions about this recent relief or other items related to your taxes, let us know.