September 6, 2022 If you're struggling in the aftermath of the COVID-19 pandemic, the IRS is providing penalty relief to most people who filed certain 2019 or 2020 returns late. By the end of September 2022, you may be one of millions of taxpayers who will automatically receive refunds or credits of assessed penalties you paid. This relief applies to the failure-to-file penalty. The IRS typically assesses the penalty at a rate of 5% per month, up to 25% of the unpaid tax when you file a federal income tax return late. It applies to forms in both the 1040 and 1120 series, and others. You'll find full details in Notice 2022-36 on IRS.gov.
