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

Partnership

An unincorporated business or income-producing entity organized by two or more persons. A partnership is not subject to tax but passes through to the partners all income, deductions, and credits, according to the terms of the partnership agreement.

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