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.
A tax technique for receiving a refund of back taxes by applying a deduction or credit from a current tax year to a prior tax year. For example, a business net operating loss may be carried back for two years.