Did you File Or Pay Your 2020, 2021 or 2022 Taxes Late? Penalty Relief May Apply

There is a possible ABATEMENT of penalties related to 2020, 2021 and 2022 late filing, late payment or underpayment of estimated tax. (Also for 2023 Q1 underpayment of estimated tax)

Due to COVID, tax payment deadlines were extended.

Although the IRS granted temporary COVID relief, a recent case found a court saying COVID relief should extend to mid 2023 since Biden didn’t officially sign a document that said the pandemic ended in 2020 (as Trump didn’t do this before he left office)

This case is being appealed and a final answer may take years.

IF the appeals court agrees with the taxpayer, 2020-July 2023 penalties for underpayment of estimated tax will be abated.

If you would like to file a protective refund claim it is due July 10, 2026. Please contact me if you need assistance.

Even if the court agrees with the taxpayer, you may NOT see a penalty abatement for YEARS as these protective refunds are paper filed.

The Covid employee retention credit refunds filed in 2020 and 2021 were paper filed and some cases took 2-4 years to receive a refund.