IRS Forgives Penalties For Millions Of Taxpayers Who Filed Late—Here’s Who Qualifies
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Aug 24, 2022,04:06pm EDT
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- The Internal Revenue Service said Wednesday it will waive and refund penalties for Americans who filed their 2019 or 2020 tax returns late, as the agency struggles with a massive Covid-imposed backlog that has frustrated taxpayers and politicians.
The relief program will automatically wipe away two years’ worth of “failure to file” penalties, which usually require taxpayers who miss the IRS’s filing deadline to pay 5% of unpaid tax per month, maxing out at up to 25% of their total unpaid tax bills.
Almost 1.6 million taxpayers who have already forked over failure to file penalties for their 2019 or 2020 returns will automatically be refunded by the end of next month, adding up to more than $1.2 billion in total refunds, the agency said in a statement.