IRS refunding $1.2 billion in late-filing fees for nearly 1.6 million

Ekaterina Goncharova | Moment | Getty Images

The IRS on Wednesday announced it will waive penalties for many Americans who late-filed tax returns during the pandemic.

Nearly 1.6 million filers will automatically receive a collective $1.2 billion-plus in penalty refunds or credits, according to the federal agency, with many payments expected to come by the end of September.  

The relief applies to many individuals and businesses that filed tax returns for 2019 and 2020 late, the IRS said. 

More from Personal Finance:
What Biden’s student loan forgiveness means for your taxes
Student loan payment pause extended through December
Biden student loan forgiveness plan: Who’s eligible, how it works, when to apply

“Throughout the pandemic, the IRS has worked hard to support the nation and provide relief to people in many different ways,” said IRS Commissioner Chuck Rettig.

“The penalty relief issued today is yet another way the agency is supporting people during this unprecedented time,” he said.

The waiver applies to the agency’s late filing penalty of 5% of your unpaid balance per month, capped at 25%. Late payment penalties of 0.5% per month may still apply.

Eligible tax returns include individual, corporate, estates and trusts and more, according to an IRS notice. However, you must file the tax returns by Sept. 30 to qualify, the IRS said.

Tax pros say IRS penalty relief is ‘very welcome’

Source link

About rtsuggests

Check Also

NFL nearing rights deal with Google’s YouTube TV for Sunday Ticket

New England Patriots tight end Hunter Henry (85) celebrates his touchdown run against the Cleveland …

Leave a Reply

Your email address will not be published. Required fields are marked *

About Us | ccpa california consumer privacy act