IRS Publication 5697 – IRS Forms, Instructions, Pubs 2026 – In the wake of the COVID-19 pandemic, many taxpayers faced challenges in meeting tax filing deadlines. To ease this burden, the Internal Revenue Service (IRS) introduced significant relief measures. One key resource is IRS Publication 5697, which outlines automatic penalty relief for individuals and businesses who filed certain 2019 and 2020 tax returns late. This guide breaks down the essentials of the publication, including eligibility, covered forms, and how the relief works, helping you understand if it applied to your situation.
What Is IRS Publication 5697?
IRS Publication 5697, titled “IRS provides automatic penalty relief to most people and businesses who file certain 2019 and 2020 returns late,” was released in September 2022 as part of broader efforts to support taxpayers impacted by the pandemic. It references IRS Notice 2022-36, which provided penalty waivers for late filings. The relief focused on the failure-to-file penalty, which is typically 5% per month (up to 25%) of unpaid taxes for late federal income tax returns.
This initiative was designed to help struggling taxpayers without requiring them to request relief manually. As a result, nearly 1.6 million taxpayers received over $1.2 billion in refunds or credits, with most distributed by the end of September 2022. While the program targeted pandemic-related delays, it’s important to note that the key deadline for qualifying was September 30, 2022.
Who Qualifies for Automatic Penalty Relief Under Publication 5697?
The relief was automatic for eligible taxpayers—no applications or additional forms were needed. To qualify for income tax return relief, filers had to submit any eligible 2019 or 2020 return by September 30, 2022. For information returns, eligibility hinged on specific filing dates: 2019 returns were considered timely if filed by August 1, 2020 (or August 3, 2020, accounting for weekends), and 2020 returns by August 1, 2021 (or August 2, 2021).
Both individuals and businesses could benefit, including those filing forms like the 1040 series for personal taxes or 1120 series for corporations. However, if you had already paid penalties, the IRS automatically issued refunds or credits. Businesses, in particular, saw targeted announcements emphasizing this relief.
Which Tax Forms and Years Are Covered?
Publication 5697 covers a range of forms for the 2019 and 2020 tax years, focusing on those commonly affected by pandemic disruptions. Key categories include:
- Income Tax Returns: Forms in the 1040 series (e.g., individual returns), 1120 series (e.g., corporate returns), 1065 (partnership returns), and others detailed in Notice 2022-36.
- Information Returns: Various forms like the 1099 series, which report income such as freelance earnings or interest.
- International Information Returns: Certain penalties assessed during processing, though not those from examinations.
Note that this relief did not extend to failure-to-pay penalties or interest, which continued to accrue based on original due dates.
Types of Penalties Relieved and Key Exclusions
The primary focus was on waiving the failure-to-file penalty for eligible late returns. This automatic abatement applied even if penalties had already been assessed or paid. However, exclusions ensured the relief wasn’t universal:
- Penalties related to fraudulent returns were not waived.
- Relief didn’t cover penalties in accepted offers in compromise, closing agreements, or court determinations.
- Other penalties, like failure-to-pay, required separate requests under programs such as First Time Abate or reasonable cause criteria.
- International return penalties from audits were excluded.
For ineligible cases, taxpayers could still seek relief through standard IRS procedures.
How to Claim Relief and What About Refunds?
Since the relief was automatic, no action was typically required. If you received a penalty notice for an eligible return, the IRS would handle the abatement. For those who overpaid, refunds were issued via paper check, with most completed by late September 2022. The IRS estimated $1.2 billion in total relief, benefiting millions.
If your situation didn’t qualify under this automatic program, consider other IRS penalty relief options, such as administrative waivers for first-time offenders. Always consult IRS.gov/penaltyrelief for the latest details.
Why This Relief Matters Today
Even though the September 30, 2022, deadline has passed, understanding IRS Publication 5697 remains valuable for taxpayers reviewing past filings or dealing with lingering notices. It highlights the IRS’s flexibility during crises and sets a precedent for future relief. If you’re unsure about your eligibility or have questions about similar programs, reach out to a tax professional or visit the official IRS website for guidance.
This pandemic-era measure provided much-needed support, but remember: timely filing is always the best way to avoid penalties. Stay informed on IRS updates to manage your taxes effectively.