IRS To Waive Penalty Fees For Those Who Failed To Pay 2020-21 Back Taxes

Nearly 5 million people, businesses and tax-exempt organizations will be eligible for the relief starting this week, which totals the amount of waived fees to around $1 billion.

The IRS announced plans to waive penalty fees for people who failed to pay back taxes in 2020 and 2021.

The waived fees only apply to those who owed less than $100,000 per year in back taxes for both years.

Nearly 5 million people, businesses and tax-exempt organizations will be eligible for the relief starting this week, which totals the amount of waived fees to around $1 billion.

In February of 2022, the IRS temporarily suspended mailing automated reminders to pay overdue tax bills during the pandemic.

The announcement is meant as one-time relief based on the interruption caused by COVID-19.

If people paid the failure-to-pay penalty already, they will be sent a refund.