20220824 IRS Notice 2022-36

IRS releases penalty relief for taxable years 2019 and 2020

I am just now reading the IRS Notice 2022-36 and wanted to share the news to help spread it around. I guess it was initially released last night (August 23, 2022) and then pulled off their website. It was then re-released to their website today, August 24, 2022.

The notice proves relief for certain taxpayers from certain failure to file penalties and certain international informational return penalties with respect to tax returns for taxable years 2019 and 2020 that are filed on or before September 30, 2022. Apparently, the relevant penalties will be waived, or to the extent previously assessed, they will be abated, refunded or credited to the taxpayers account.

The tax professional community has been requesting this type of relief for the last two years, and in the last paragraph of Section 2, the IRS finally acknowledges that they are so far behind, granting this broad relief is the only chance they have of getting caught up and returning to normal operations.

You can download the actual IRS notice here and read it for yourself. https://www.irs.gov/pub/irs-drop/n-22-36.pdf

The IRS has also released a bulletin covering this notice and you can read this bulletin here: https://content.govdelivery.com/accounts/USIRS/bulletins/32972a1?reqfrom=share

What are tax pros saying?

Here is a sample of some of the conversations on Twitter from #TaxTwitter