Many people missed the deadline

Let’s be honest, deadlines were hard to meet during pandemic lockdowns for a lot of reasons.

“This will help a lot of taxpayers that couldn't meet with their accountants, couldn't file their taxes on time,” says Eileen Sherr, director for tax policy and advocacy with the American Institute of Certified Public Accountants (AICPA).

The relief applies to the 1040 and 1120 form series, which deal with income and corporate taxes. And Sherr says the move on the IRS's part was necessary.

“We've been asking for it for years now, since the beginning of the pandemic,” she says.

Sherr points out that a larger than average number of people failed to meet the filing deadlines during the pandemic because of business closures and administrative backlogs.

“Sometimes it was just like a day or two late, a week or two late, but there were penalties that were assessed,” Sherr says.

But because the IRS only announced the relief in August, the AICPA worries many people might not be able to meet the deadline. To that end, the organization sent a letter to the IRS requesting that the deadline extension for getting the 2019 and 2020 taxes be extended beyond Sept. 30 to the end of the year.

“Especially if you have taxpayers who are abroad, and they're trying to file and get all their returns — it's really hard to get everything in time to meet this short deadline,” says Sherr. “It would just give more time for more people to voluntarily comply, if they haven't, and for all the penalty issues to be resolved.”

Don't worry, you can still file on your own or with expert help. 30% of Americans who file electronically file with TurboTax.

Get Started

How to make sure you get it

If you haven’t filed your 2019 or 2020 taxes yet, then you’ll need to do so by Sept. 30 to be eligible for relief.

But if you’ve already filed and paid a penalty, then you shouldn’t have to do anything to get your refund. That being said, if you’re expecting a refund, Sherr suggests checking your account on the IRS website.

However, keep in mind that it may take a few weeks for the refund to be processed. And the forgiveness only applies if you filed late, not if you paid late.

“[The] IRS said they were going to try to get the adjustment by the end of October … It could take a month or two. But I would say by the end of October, that account should be adjusted.”

If you don’t see something by then, Sherr suggests contacting the IRS.

And if you get a notice warning that you filed late and will need to pay a late penalty but believe you’re eligible for this exemption, then you should contact the IRS, says Sherr.

“You can just respond back that the notice applies and it should be abated.”

More: Best tax software of 2022

Here's how to save up to $700/year off your car insurance in minutes

When was the last time you compared car insurance rates? Chances are you’re seriously overpaying with your current policy.

It’s true. You could be paying way less for the same coverage. All you need to do is look for it.

And if you look through an online marketplace called SmartFinancial you could be getting rates as low as $22 a month — and saving yourself more than $700 a year.

It takes one minute to get quotes from multiple insurers, so you can see all the best rates side-by-side.

So if you haven’t checked car insurance rates in a while, see how much you can save with a new policy.

About the Author

Lauren Bird

Lauren Bird

Staff Reporter

Lauren Bird is a reporter for Moneywise.com. Before writing about personal finance Lauren reported and produced for CBC and BBC Radio. Her work has also appeared in The Atlantic.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.