Over $1 billion in penalties for taxes owed in 2020 and 2021 are waived by the IRS

If you failed to pay your taxes in 2020 or 2021 and were penalized, you might be eligible for a tax reduction from the IRS.

The IRS has declared that 4.7 million taxpayers who did not get appropriate collection reminder, reminders for the tax years 2020 and 2021 will obtain penalty relief. In addition to the forgiveness of nearly 2 years’ worth of failure-to-pay penalties, taxpayers will still repay any outstanding tax balances.

The organization projects providing tax relief of roughly $1 billion. It states that less than 70% for every person taxpayers who qualify for this relief make less than $100,000 annually.

“The IRS temporarily stopped issuing automated warnings to pay past-due tax bills throughout the pandemic.