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September 14, 2022

Notice 2022-36 provides only limited relief from information return penalties for tax years 2019 and 2020

As part of its ongoing response to the COVID-19 pandemic, the Internal Revenue Service (IRS) provided penalty relief in Notice 2022-36 for certain tax returns and information returns, such as Forms 1099 and 1042-S, for tax years 2019 and 2020. For additional information about COVID-19 and information reporting requirements and deadlines, please see Tax Alert 2022-1308.

EY Observes: While any penalty relief is welcome, the relief from information return penalties in Notice 2022-36 is limited to narrow circumstances. For example, the relief does not apply to the following:

  • Failure to file accurate information returns ($270 per return for 2019 returns, $280 for 2020 returns), including returns with missing or incorrect taxpayer identification numbers for the payees
  • Failure to timely file information returns filed after August 1 of the applicable year ($270 per return for 2019, $280 per return for 2020)
  • Failure to file as a result of intentional disregard of the filing requirement (typically 10% of the amount required to be reported)
  • Penalties related to payee statements (i.e., the copy of the information return required to be provided to the payee)
  • Penalties a filer has agreed to pay under an accepted offer in compromise under IRC Section 7122 or a closing agreement under IRC Section 7121
  • Penalties finally determined in a judicial proceeding

As the relief in Notice 2022-36 does not extend to these forms, these penalties still apply. Filers may, however, request abatement of penalties for reasonable cause for those penalties not addressed in the notice.


Contact Information
For additional information concerning this Alert, please contact:
Financial Services Organization
   • Tara Ferris (
   • David Jensen (
   • Justin O’Brien (
   • Debbie Pflieger (
   • Jonathan Jackel (
   • Todd Larsen (
   • Doug Sawyer (
   • Tom Smith (
   • David Taylor (