In Notice 2022-36 issued August 24, 2022, the IRS publicized that a broad range of tax and information returns for the 2019 and 2020 tax years will receive automatic relief from failure-to-file penalties. Tax returns eligible for the relief include specified returns in the Form 1040, 1041, 1065, and 1120 series. Penalties for fraudulent failure to file under Sec. 6651(f) or the penalty for fraud under Sec. 6663 are not eligible for relief.
The IRS also said approximately 1.6 million taxpayers who have already paid these penalties will automatically receive an estimated $1.2 billion in refunds or credits. Those who have not paid the penalties will see automatic abatement. The caveat is that any return still unfiled for the two tax years must be filed by September 30, 2022 to be eligible for this relief.