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Taxpayers in areas covered by certain Federal Emergency Management Agency disaster declarations may have more time to file their returns to qualify for the penalty relief under Notice 2022-36 for their 2019 and 2020 tax returns.

Notice 2022-36 states, penalties for late-filing certain tax returns, and for not reporting certain required information on Form 1065 or Form 1120-S, are waived or stopped if the relevant return was filed on or before September 30, 2022. Taxpayers who reside or have a business in recently declared FEMA disaster areas have more time to file the return to get this relief.


Postponed deadlines

Areas with a deadline of November 15, 2022, include:

  • Counties in Missouri identified under FEMA’s Major Disaster Declaration 4665.
  • Counties in Kentucky identified under FEMA’s Major Disaster Declaration 4633.
  • The island of St. Croix in the U.S. Virgin Islands.
  • Members of the Tribal Nation of the Salt River Pima Maricopa Indian Community.

Areas with a deadline of February 15, 2023, include:

The relief applies to the failure-to-file penalty that is typically assessed at a rate of 5% per month, up to 25% of the unpaid tax when a federal income tax return is filed late. This relief applies to forms in both the 1040 and 1120 series, as well as others listed in Notice 2022-36.

Unlike the failure-to-file penalty, the failure-to-pay penalty and interest will still apply to any unpaid tax. The failure-to-pay penalty is normally 0.5% per month, up to 25%. The interest rate is currently 6%, compounded daily.


Some tax returns are not eligible

Penalty relief is not available in all situations, such as where a fraudulent return was filed, where the penalties are part of an accepted offer in compromise or a closing agreement, or where the penalties were finally determined by a court. For complete details, taxpayers should read Notice 2022-36, available on

Other penalties, such as the failure to pay penalty, are not eligible. However, taxpayers may use existing penalty relief procedures for penalties not eligible under Notice 2022-36. More information about existing procedures is available on the Penalty Relief page of

This relief does not apply to 2021 returns. Taxpayers should visit the disaster relief page of for more information about tax year 2021.

This article was published with permission from the IRS.