COVID Tax Tip 2022-167: Taxpayers in declared disaster areas have more time to file tax returns to get COVID penalty relief

IRS Tax Tips November 1, 2022
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number:  COVID Tax Tip 2022-167 __________________________________________________________ Taxpayers in declared disaster areas have more time to file tax returns to get COVID penalty relief Taxpayers in areas covered by certain Federal Emergency Management Agency disaster declarations may have more time to file their returns to qualify for the penalty relief under Notice 2022-36 for their 2019 and 2020 tax returns. Notice 2022-36 states, penalties for late-filing certain tax returns, and for not reporting certain required information on Form 1065 or Form 1120-S, are waived or stopped if the relevant return was filed on or before September 30, 2022. Taxpayers who reside or have a business in recently declared FEMA disaster areas have more time to file the return to get this relief. Postponed deadlines Areas with a deadline of November 15, 2022, include: Counties in Missouri identified under FEMA's Major Disaster Declaration 4665. Counties in Kentucky identified under FEMA's Major Disaster Declaration 4633. The island of St. Croix in the U.S. Virgin Islands. Members of the Tribal Nation of the Salt River Pima Maricopa Indian Community. Areas with a deadline of February 15, 2023, include: Florida Puerto Rico North Carolina South Carolina Areas in Alaska identified under FEMA's Major Disaster Declaration 4672 Hinds County, Mississippi. The relief applies to the failure-to-file penalty that 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. This relief applies to forms in both the 1040 and 1120 series, as well as others listed in Notice 2022-36. Unlike the failure-to-file penalty, the failure-to-pay penalty and interest will still apply to any unpaid tax. The failure-to-pay penalty is normally 0.5% per month, up to 25%. The interest rate is currently 6%, compounded daily. Some tax returns are not eligible Penalty relief is not available in all situations, such as where a fraudulent return was filed, where the penalties are part of an accepted offer in compromise or a closing agreement, or where the penalties were finally determined by a court. For complete details, taxpayers should read Notice 2022-36, available on IRS.gov. Other penalties, such as the failure to pay penalty, are not eligible. However, taxpayers may use existing penalty relief procedures for penalties not eligible under Notice 2022-36. More information about existing procedures is available on the Penalty Relief page of IRS.gov. This relief does not apply to 2021 returns. Taxpayers should visit the disaster relief page of IRS.gov for more information about tax year 2021. Share this tip on social media -- #IRSTaxTip: Taxpayers in declared disaster areas have more time to file tax returns to get COVID penalty relief http://ow.ly/fn1k50Lq86F Back to top           Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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