October 31, 2022 12:44 am

Automatic Penalty Relief

The IRS announced in late August 2022 that it is providing relief from failure-to-file penalties for tax years 2019 and 2020 for returns (Form 1040 or 1040-SR) filed by September 30, 2022 (Notice 2022-36). No action is required for this relief. Anyone who already paid a penalty will receive a refund. The penalty relief does not apply to any penalty settled in a closing agreement or finally determined in a judicial proceeding.

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Tax Glossary

Passive activity loss rules

Rules that limit the deduction of losses from passive activities to income from other passive activities. Passive activities include investment rental operations or businesses in which you do not materially participate.

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