Tim’s Tax News on the Tenth – September 2022

Late last month the IRS issued its Notice 2022-36 in which it announced some limited penalty relief for certain taxpayers for tax years 2019 and 2020. The announcement stated that the penalty relief (mostly late filing penalties) would be automatic and that taxpayers would not have to do anything to receive the penalty abatement from the IRS.

The IRS said the relief extended beyond income tax returns to include certain information returns as well. The late filing penalty abatement applies to taxable year 2019 returns that were filed on or before August 1, 2020, and with respect to taxable year 2020 returns that were filed on or before August 1, 2021. The relevant penalties will be waived or, to the extent previously assessed, abated, refunded, or credited to the taxpayers. The relief covers the following forms:

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 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents; 

Form 1040 (PR), Federal Self-Employment Contribution Statement for Residents of Puerto Rico; 

Form 1040-SR, U.S. Tax Return for Seniors; 

Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico); 

Form 1041, U.S. Income Tax Return for Estates and Trusts; 

Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts; 

Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts; 

Form 1065; 

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 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation; 

Form 1120-H, U.S. Income Tax Return for Homeowners Associations; 

Form 1120-L, U.S. Life Insurance Company Income Tax Return; 

Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons; 

Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return; Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations; 

Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts; 

Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies; Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B);

Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return; 

Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation; and 

Form 990-T, Exempt Organization Business Income Tax Return (and Proxy Tax Under Section 6033(e)). 

Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, 

Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, 

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 

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 29 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

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Lavelle Law, Ltd. is registered with the Illinois Department of Financial and Professional Regulation as an approved continuing education provider for CPE for CPAs and Enrolled Agents. If your organization is seeking CPE courses in the area of Business Law, Innocent Spouse Relief, IRS Collections, Tax Scams (including ID Theft), or other areas in tax law that can be taught at your office, please contact me at thughes@lavellelaw.com.