Bulletin - IRS Provides Penalty Relief on 5 Million Returns
The IRS announced this week that it was providing about $1 billion in penalty relief to taxpayers who should have received collection notices during the pandemic - specifically applying to 2020 and 2021 tax returns. The Press Release has several nuggets beyond the headline penalty relief. These nuggets provide guidance on several topics. Among the interesting items: Quoting from the Press Release - Given this unusual situation, the IRS is taking several steps in advance of resuming normal collection notices for tax years 2020 and 2021 to help taxpayers with unpaid tax bills, including some people who have not received a notice from the IRS in more than a year. (Italics added). This penalty relief is automatic. Eligible taxpayers don't need to take any action to get it. Eligible taxpayers who already paid their full balance will benefit from the relief, too; if a taxpayer already paid failure-to-pay penalties related to their 2020 and 2021 tax years, the IRS will issue a refun