Federal Tax, Tax

Potential Pandemic-Related Tax Penalty Relief

The IRS is providing broad-based penalty relief to most taxpayers who filed certain 2019 and/or 2020 tax returns late due to the COVID-19 pandemic. The relief will be automatic for qualifying individual and business taxpayers. Specifically, it applies to the failure-to-file penalty. This penalty is typically assessed at a rate of 5% per month, up to 25% of the unpaid tax when a federal income tax return is filed late. The relief applies to tax returns in both the Form 1040 and Form 1120 series, as well as information returns in the Form 1099 series, among others. To qualify, any eligible income tax return must be filed on or before Sept. 30, 2022. Click here to learn more. Questions? Contact Cg Tax, Audit & Advisory. © 2022