Aug. 25 (UPI) — The IRS is refunding $1.2 billion in late filing penalties to 1.6 million taxpayers who were late filing returns for 2019 and 2020. An IRS statement called it COVID-19 tax relief.
“Throughout the pandemic, the IRS has worked hard to support the nation and provide relief to people in many different ways,” IRS Commissioner Chuck Rettig said in the statement.
“The penalty relief issued today is yet another way the agency is supporting people during this unprecedented time. This penalty relief will be automatic for people or businesses who qualify; there’s no need to call.”
The IRS issued a notice Wednesday detailing the penalty relief, which will be issued automatically to taxpayers who have filed their late returns on or before Sept. 30.
The IRS said the step is being taken so it can focus resources on processing backlogged returns in an effort to return to normal operations for the 2023 tax filing season.
The penalties will be waived, abated, refunded or credited. Many of these penalty refunds and credits are expected to come by the end of September, according to the IRS.
“Penalty relief is a complex issue for the IRS to administer,” Rettig said in a statement. “We’ve been working on this initiative for months following concerns we’ve heard from taxpayers, the tax community and others, including Congress.
“This is another major step to help taxpayers, and we encourage those affected by this to review the guidelines.”
