"to set up an exception on the late payroll process"

Let's understand the no one here provided the recommendation to apply for this as a Late election; we don't know who gave that recommendation or why.

I did post this, copied from the IRS: "The entity and all shareholders reported their income consistent with an S corporation election in effect for the year the election should have been made and all subsequent years"

Which is why @rbynaker contributed an example of why late election might be appropriate.

"and waive the late filing penalty and incremental burden on the taxpayers."

It's a one-time thing, to do an annual payroll. And I like to point out, doing it timely or doing it later is the same amount of work. There is no Added burden here.

"Because many taxpayers are unaware of the S-Corp election could benefit them"

There's very little additional benefit to this election for single-member LLC/Sole Proprietorship with no employees.

"Is there a way to propose the IRA to provide some relief on this, so people do not get penalized by trying to do the right thing?"

Well, "I didn't know" is not really an excusable exception, if none of the conditions are being met.

It seems you are insisting this will be S Corp for 2020 activities.

There is always the possibility you can make precedence or get a private ruling:

https://www.irs.gov/businesses/small-businesses-self-employed/late-election-relief