The IRS said it will waive penalties for almost 5 million taxpayers on their 2020 and 2021 tax returns.
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.
