IRS Waives Penalty Fees for Taxpayers

The IRS has announced that it will waive penalty fees for taxpayers who owe less than $100,000 in back taxes for the years 2020 and 2021. This relief will benefit around 4.6m individuals, businesses, and tax-exempt organizations, totaling about $1bn. The decision to forgive the failure-to-pay penalties is attributed to the temporary suspension of automated reminders during the pandemic. The IRS plans to resume sending collection notices but considers this a one-time relief due to the unprecedented circumstances caused by COVID-19. Taxpayers who meet the eligibility criteria will automatically receive the relief without needing to take additional action. Those who have already paid the failure-to-pay penalty will receive a refund.