News from Griffing & Company, P.C. - Late Filing Penalty Relief

News & Updates

September 19, 2022

Certified Public Accountants and Consultants

IRS Late Filing Penalty Relief

With continued efforts to support taxpayers who were affected by the pandemic, the IRS announced on August 24, 2022, that it will provide penalty relief to most individual and business taxpayers who filed a delinquent 2019 or 2020 tax return due to the Covid pandemic. The penalty abatements and relief are only accessible if the taxpayer files an eligible tax return on or before September 30, 2022. For those that filed a delinquent tax return and have already paid the failure to file penalty, the IRS will automatically refund those payments back to the taxpayers.

Which returns qualify for the Penalty Relief?

In addition to the above, the IRS also offers penalty relief to banks, employers and other businesses that are required to file various information returns, such as those in the 1099 series, if the 2019 and/or 2020 return was filed by August 1, 2020 & August 1, 2021, respectively.

The relief also applies to filers of most international information returns, such as those reporting transactions with foreign trusts, receipt of foreign gifts, and ownership interests in foreign corporations in which a return must be filed on or before September 30, 2022.

This is a major step forward for the IRS as it continues to diligently focus its efforts on minimizing the current backlog of returns and taxpayer correspondence ahead of the 2023 filing season, which is merely a few months away.

The automatic penalty relief does not apply to situations not mentioned above nor does it apply to any fraud situations, accepted offer in compromise, a settled agreement or a finally determined judicial proceeding.

Griffing & Company, P.C. is here to help you!

If you believe you may qualify for the Penalty Relief, contact our office today to see how we can help you within the next 2 weeks. September 30^th will be here before we know it. Do not delay!

GRIFFING & COMPANY, P.C.

One Sugar Creek Center Blvd., Suite 650

Sugar Land, TX 77478

(281) 491-8866 Fax (281) 491-8998

i nfo@griffing.com