 internal revenue service IRS tax news reminder file 2019 and 2020 returns by September 30th to get COVID penalty relief honestly I have to file by September 30th to get COVID relief what what are they gonna do if I don't file withhold the vaccine I mean this is ridiculous I have to file my taxes to get COVID penalty but they make it sound like the whole COVID thing was just some kind of IRS collection strategy all along the iris is like let's see how can we increase the government revenue hitting people with financial fees and interest is just not strong enough of a stick what we really need is some kind of threat of death hey I have an idea I'm fairly certain our good buddies over at the Wuhan lab you know in China the ones that we fund with all that gain of function money we send them all the time I'm sure they could come up with something honestly all the pieces are fitting together now and the picture it's making is as ugly as that storyteller they keep on making my five-year-old child watch during story hour put the pieces back in the box for crying out loud I want to work out a different jigsaw puzzle one that has a nice picture I've been reliably informed that mom's the word remember mom's the word but it's like well hold on a second eternal chaos comes with chocolate rain you guys chocolate how can mom be the word I mean I'm not even sure mom is a word you know like I don't think I've ever used mom in a sentence before did you hear I used existentialist in a sentence I heard always wanted to do that it was very impressive ah it's kind of like saying shaka laka is the word boom shaka laka it's like that's the shaka laka is not a word that's not a word no idea what this means do you know then why did you print it I like the kitty it's more like a cool sounding nonsense thing a robin red breast in a cage puts all heaven ii are 2022-163 September 22nd 2022 Washington the internal revenue service today reminded struggling individuals and businesses affected by the COVID-19 pandemic that they may qualify for late filing penalty relief if they file their 2019 and 2020 returns by September 30th 2022 besides providing relief to both individuals and businesses impacted by the pandemic this step is designed to allow the IRS to focus its resources on processing backlogged tax returns and taxpayer correspondence to help return to normal operations by the 2023 filing season so if you don't know the IRS kind of got backed up on some of the work they're due in part to the pandemic the response to the pandemic including the social distancing stuff which they tried to implement in essence from a top down perspective so a lot of the craziness went to government entities you would think like the IRS and other people that are a little bit more saying that are a little bit further away probably didn't get hit by so much of the heavy handedness of that and then of course some of the responses to the pandemic were going through the IRS laws and regulations so things like the stimulus payment and whatnot went through basically the IRS they also had changes that were fairly significant to the IRS tax law and those changes are going to make things a little bit more difficult to process everything because normally things change quite slow with regards to the income tax law or that's generally what we would like to generally happen so they got backed up on stuff and they're trying to basically get everything up to speed so that they can go into the next filing season coming up shortly that for the 2022 filing season that starts into you know 2023 as best they can but also note that they also hired a bunch more people so we'll see how efficient they are with it with that as well in any case quote we thought carefully about the type of penalties the period covered and the duration before granting this penalty relief we understand the concerns being raised by the tax community and others about the September 30th penalty penalty relief deadline in quote said IRS Commissioner Chuck Reddick quote given planning for the upcoming tax season and ongoing work on the inventory of tax returns filed earlier this year this penalty relief deadline of September 30th strikes a balance it is critical to us to not only provide important relief to those affected by the pandemic but this deadline also allows adequate time to prepare our systems and our works streams to serve taxpayers and tax community during the 2023 filing season end quote the relief announced there's a link to that announcement here last month applies to the failure to file penalty the 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 this relief applies to forms in both the form 1040 and 1120 series as well as others listed in the notice 2022-36 there's a link to that posted on irs.gov so we've talked about this in some of the past news releases that they're giving that relief for the penalties it's kind of an interesting decision so I could see why people would have kind of questions on it because again they gave the relief to people that could have filed on time but chose not to it's not like the pandemic really stopped people from filing on time the pandemic stopped people from basically being able to pay on time so the fact that they're doing the relief on the penalty side of things for people that didn't file on time seems a little bit strange because it seems like it's a penalty on the people that actually did file on time even though they didn't have the capacity to pay you would think that if they were trying to give relief to everybody they would give the relief to the people that maybe you couldn't pay right that would make more sense to me but in any case I also think they might have done it to look more like a stimulus payment so because they had to return the penalties they they from a political standpoint maybe they couldn't get the stimulus payments through to be able to give out another stimulus payment so they tried to do something that looks like they're giving out money in a similar fashion even though it's not a stimulus payment it was penalty relief and I and I also he's arguing here that this is going to save them time so that they can they can round up or get up get ready for the next filing season I'm not exactly sure how that's the case either because they're gonna have to send out the these payments to the people that already paid the penalty you would think would be more work not less possibly you can save some time calculating penalties for people they haven't calculated penalties for but again I I'm a little bit I do be is about the rationale here but whatever for anyone who's gotten behind on their taxes during the pandemic this is a great opportunity to get caught up to to qualify for relief any eligible income tax return must be filed on or before September 30th 2022 so meaning if you filed it late then you're gonna be subject to these late filing penalties typically and but they're gonna try to waive those penalties if you still file by the September 30th so those two filed during the first few months after the September 30th cutoff will still qualify for partial penalty relief that's because for eligible returns filed after that date the penalty starts accruing on October 1st 2022 rather than the return's original due date because the penalty accrues based on each month or part of a month that a return is late filing sooner will limit any charges that apply unlike the failure to file penalty the failure to pay penalty and interest will still apply to unpaid tax based on the return's original due date so in other words when you file the tax return there's really two things that that you can get hit with penalties from one is the failure to file you don't file the return on time and so then they start hitting you with penalties and interest the other is that you didn't pay so the fact that you didn't file doesn't mean you still don't have the non-payment penalty and again to me if someone was in was in financial difficulties and a lot of people have been of course in the last a couple years and they couldn't file the tax return or they couldn't pay the taxes like it's the first time and they couldn't pay the taxes because of the all the craziness that's going on you would think that they could still file and then they couldn't pay they'd have to go on a payment plan or something like that so you would think that in order to give a fair relief you would think that you would give it maybe on the payment side of things rather than the filing side of things because even if you can't pay the taxes you could still file you could still avoid the filing and if a lot of people may not have because maybe it's the first time they couldn't pay and they decided to just not do anything you know but again it seems kind of unusual that that they would do that when it also gets an incentive like they've done this a few times now with this penalty relief kind of stuff where they're incentivizing people to to not not file or not pay their estimated taxes because it might get relieved and that's a little weird any case the failure to pay penalty is normally point five percent one half of one percent per month the interest rate is currently five percent per year compounded daily but that rate is due to rise to six percent on October 1st 2022 obviously they're trying to keep up with inflation with that increase taxpayers can limit these charges by paying up properly for more information including details on fast and convenient electronic payment options visit irs.gov forward slash payments there's a link to that here penalty and interest charges generally don't apply to refunds the notice also provides details on relief for filers of certain international information returns when a penalty is assessed at the time of filing no relief is available for applicable international information returns when the penalty is part of an examination to qualify for this relief any eligible tax return must be filed on or before September 30th 2022 penalty relief is automatic this means that eligible taxpayers who have already filed their return do not need to apply for it and those filing now do not need to attach a statement or other document to their return so if you haven't filed and you're and you're late ready then you want to file before this deadline and you they should automatically apply the penalty without you having to take any extra steps if you have already filed it was late but you filed then they may have already charged you the the penalties which means they're gonna have to refund the penalties which once again should be automatic they should just do the calculations and refund them that's where you would think this would make be more work for the irs as they possibly have to send out those checks but possibly that's from a political standpoint what they're looking for to look like they're sending out stimulus payments or something and generally those who have already paid the penalty getting their refunds most by the end of September so penalty relief is not available in some situations such as where the fraudulent return was filed where the penalties are part of an accepted offer in compromise or closing agreement or where the penalties were finally determined by a court so this relief is limited to the penalties that the noted specifically states are eligible for relief for ineligible penalties such as the failure to pay penalty taxpayers may use existing penalty relief procedures such as applying for relief under the reasonable cause criteria or the first time a bait program and that might be applicable to a lot of people in the last couple of years because again a lot of people you know weird weird situations in terms of work situations happened you might have just said I'm I froze and I didn't file I just said I'm not going to do anything because I can't pay the taxes I don't know what to do at that point in time so if you got if you got penalties sometimes you can call the IRS and it's similar to like contacting your credit card company when you miss the payment they charge you a penalty and you're like hey I'm a really good customer just could you waive the penalty usually they will for the first time good behavior penalty similar kind of thing with the taxes so if you get out of whack and it's like but you're usually doing well then you might be able to get those those penalties abated for basically good good business relations before that right so visit irs dot gov penalty relief there's a link to that for details this relief doesn't apply to 2021 returns whether or not they have a tax filing extension the irs urges everyone to file their 2020 return soon to avoid processing delays for filing tips visit irs dot gov irs dot gov the irs website irs gov anyways there's links to all this stuff i'm going to stop saying anyways i gotten a habit of saying anyways it's certain i'm starting to bug myself so if i'm bugging you by saying that then uh i'm i'm working on it i'm working on it but there'll be a link to this in the description