IRS To Waive $1 Billion In Penalties For Millions Of Taxpayers. Here's Who Qualifies.

By Aimee Picchi, CBS Dallas/Fort Worth

December 20, 2023

The IRS is waiving penalty fees for people who failed to pay back taxes that total less than $100,000 per year for tax years 2020 and 2021. The relief measure will waive $1 billion in fees for tax returns filed for those years, the IRS said on Tuesday.

The tax agency said it is nixing the fees due to the disruption caused by the pandemic, which threw the IRS into operational turmoil and led to a massive backlog in unprocessed tax returns. The relief is aimed at resolving a quandary caused by the tax agency's decision to suspend notices that taxpayers owed money. Although the IRS never sent the notices, penalties continued to mount for taxpayers in arrears.

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