The IRS has announced that it will resume collection notices and waive penalty fees for taxpayers who owe less than $100,000 in back taxes for the years 2020 and 2021.
The penalty relief will benefit around 4.6 million individuals, businesses and tax-exempt organizations, totaling about $1 billion.
The IRS attributes the decision to forgive the failure-to-pay penalties to the temporary suspension of automated reminders during the pandemic.
The agency 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 relief without needing to take additional action. Those who have already paid the failure-to-pay penalty will receive a refund. Read more.