The IRS said Tuesday it will waive penalty fees for people who fail to pay back taxes that total less than $100,000 a year for the 2020 and 2021 tax years.
Nearly 5 million people, businesses and tax-exempt organizations – most of which earn under $400,000 a year – will be eligible for relief starting this week, which totals about $1 billion, the agency said.
The IRS is temporarily suspending the mailing of automatic reminders to pay overdue tax bills during the pandemic, starting in February 2022, and agency leadership says the pause in automatic reminders is the reason behind the decision to waive penalties for failure to pay.
“Due to the unprecedented impact of the COVID-19 pandemic, this reminder is typically issued as a follow-up to an earlier notice,” the IRS said in a statement.
“While this reminder notice is suspended, failure to pay penalties continue to accrue for taxpayers who do not pay their bills in full in response to an early balance due notice.”
Nearly 5 million people, businesses and tax-exempt organizations — most of which earn under $400,000 a year — will be eligible for the relief starting this week. Getty Images
Although the IRS plans to resume sending regular collection notices, Tuesday’s announcement was intended as a one-time relief based on the unprecedented disruption caused by the outbreak, IRS officials said.
“It’s an extraordinary time and the IRS has had to take extraordinary measures,” IRS Commissioner Daniel Werfel told reporters. He said the change would be automatic for most taxpayers and would require no additional action.
Taxpayers are eligible for automatic relief if they file a Form 1040, 1041, 1120 series or Form 990-T tax return for 2020 or 2021, owe less than $100,000 a year in back taxes, and receive an early balance delinquency notice between Feb. 5, 2022 and Dec 7, 2023.
“It’s an extraordinary time and the IRS has had to take extraordinary measures,” said IRS Commissioner Daniel Werfel. AP
If people pay penalties they fail to pay, they will get a refund, Werfel said in a call with reporters. “People need to know the IRS is on their side,” he said.
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Source: thtrangdai.edu.vn/en/
