Many unforeseen situations can occur at any time and for anyone. The IRS understands this and has given taxpayers flexibility. Notice 2022-36 gives relief to those in areas declared by the Federal Emergency Management Agency as a disaster. Only 2019 and 2020 tax returns are qualified under this issue.
Areas within November 15, 2022, are below:
- Counties in Missouri (under the FEMA Major Disaster Declaration 4665)
- Counties in Kentucky (under the FEMA Major Disaster Declaration 4633)
- Crois Islands (US Virgin Islands)
- Tribal Nation Members of the Salt River Pima Maricopa Indian Community
Areas that are under February 15, 2023:
- Puerto Rico
- North & South Carolina
- Alaska (under the FEMA Major Disaster Declaration 4672)
- Mississippi (Hinds County)
Certain taxpayers under the failure-to-file penalty are qualified for this relief. The penalty rate can be from 5%- 25% of unpaid taxes. The forms that are accepted under this relief include 1040, 1120, and Notice 2022-36. It is important for taxpayers to verify their qualifications and required adjustments.
Ineligible Tax Returns
This relief is not available for all tax returns. If a return was filed and listed as fraudulent, that submission will disqualify the taxpayer from getting this relief. Returns impacted by the Failure-to-Pay penalty are also disqualified for this relief. 2021 returns are not eligible for this relief. Taxpayers that want to inquire about their 2021 return eligibility should consult with a professional tax agent.
If you want to know if you qualify for the COVID penalty relief, visit our contact page to connect with an expert tax agent.