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
Return; - 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.