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It’s a holiday gift: The IRS has announced that it will waive penalty fees for people, businesses and tax-exempt organizations who failed to pay their taxes on time for 2020 or 2021 tax years — during the COVID-19 pandemic — provided that the original tax bill was for less than $100,000.
The waiver benefits nearly 5 million people, certain businesses and tax-exempt organizations, and gives up about $1 billion in fines. Those who paid penalties will be refunded.
Why? Because automated reminders about overdue tax bills were suspended during the pandemic, too.
“People need to know the IRS is on their side,” said IRS Commissioner Danny Werfel.