IRS Waives $1 Billion in Penalties for Taxpayers

Approximately 4.7 Million Taxpayers Eligible for Relief Due to Halted Collection Letters During Pandemic

The IRS will waive nearly $1 billion in late-payment penalties for approximately 4.7 million taxpayers who owe back taxes for the years 2020 and 2021.
The penalty relief is unprecedented and is being extended due to the IRS's halt in sending out many collection letters during the pandemic.
Eligible taxpayers include those who owe under $100,000 in taxes for 2020 or 2021 and received an initial balance due notice on or before Dec. 7, 2023.
Those who have already paid these penalties will receive a refund or credit on their IRS account as early as this week.
The relief expires for debts not paid by April 1, 2024.