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:
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.