IRS Tax News

The IRS is taking unprecedented steps to waive penalty fees for individuals who owe less than $100,000 in back taxes for tax years 2020 and 2021. This relief measure, totaling $1 billion, comes as a response to the operational turmoil caused by the pandemic, leading to a backlog in unprocessed tax returns.

Key Details:
✨ Waived Fees: $1 billion in penalty fees for tax returns filed in 2020 and 2021.
🚀 Eligibility: Taxpayers owing less than $100,000 per year in back taxes.
📆 Timeline: Relief applies to initial balance-due notices between Feb. 5, 2022, and Dec. 7, 2023.

Who Qualifies:

Filed a Form 1040, 1041, 1120 series, or Form 990-T tax return for 2020 or 2021.
Owe less than $100,000 per year in back taxes.
Received an initial balance-due notice between Feb. 5, 2022, and Dec. 7, 2023.
Refund Alert:
If you paid the failure-to-pay penalty, a refund is on its way! 🌟 IRS Commissioner Daniel Werfel reassures taxpayers that the IRS is on their side.

🌐 Most Beneficiaries:
The relief primarily benefits individuals, businesses, and tax-exempt organizations with an income under $400,000 per year.

This one-time relief is automatic for many taxpayers and aims to address the unique challenges posed by the pandemic. It's a testament to the IRS's commitment to supporting taxpayers during extraordinary times.

For additional details, visithttps://www.msn.com/en-us/money/other/irs-waiving-1b-in-penalties-for-people-firms-owing-back-taxes-here-s-who-qualifies/ar-AA1lL5SI