With the number of taxpayers who were unable to meet with their tax preparer and file returns during 2019 and 2020, the Internal Revenue Service has decided to allow relief from tax penalties for these late-filers.
The relief has two benefits. First, individuals and businesses that failed to file may now file by the September 30, 2022 deadline and receive penalty relief. Second, the IRS will be able to focus on clearing its backlog of paper tax returns and get ready for the filing season next year.
IRS Commissioner Chuck Rettig stated, "We thought carefully about the type of penalties, the period covered and the duration before granting this penalty relief. We understand the concerns being raised by the tax community and others about the September 30 penalty relief deadline."
The IRS had multiple staff discussions about the right deadline and the time needed to prepare the IRS staff and computers for the filing season in 2023. Rettig continued, "Given the planning for the upcoming tax season and ongoing work on the inventory of tax returns filed earlier this year, this penalty relief deadline of September 30 strikes a balance." In his view, the selected date...More