IRS Waives Failure-to-Pay Penalties for Nearly 5 Million Taxpayers

The Internal Revenue Service (IRS) said Tuesday that it is providing failure-to-pay penalty relief for roughly 4.7 million taxpayers who didn’t receive automated collection reminder notices from the tax agency. The IRS said in a Dec. 19 announcement that the $1 billion or so in total penalty relief will be granted to certain individual taxpayers, businesses, and tax-exempt organizations, for the taxable years 2020 and 2021. The taxpayers eligible for the relief are those who did not receive automated reminders from the IRS to pay overdue tax bills when the agency temporarily suspended the mailing of such notices in February 2022 “due to the unprecedented effects of the COVID-19 pandemic.”...