Two and half years into the pandemic, the IRS has finally announced they will provide some automatic late filing penalty relief. The tax community has been lobbying for automatic relief for penalties due to the burdens placed upon taxpayers and tax professionals during the pandemic. Staff shortages, service outages, constantly shifting tax regulations, and illness caused many taxpayers and tax professionals to be unable to timely file tax returns over the last 30 months. IRS announced last week that it is providing automatic relief for late filing penalties for 2019 and 2020 tax returns. This covers most federal (but not state) income tax returns for businesses and individuals. Taxpayers do not need to do anything to receive the relief and should receive letters in the coming months communicating the penalty relief. The relief does not apply to late payment penalties or any penalties on state returns or payroll returns, among other things. Importantly, if you have not filed a 2019 or 2020 tax return, file it by September 30 to be eligible for the penalty relief.