IRS Is Refunding $1.2 Billion In Late-Filing Penalties To 1.6 Million Taxpayers. Do You Qualify?
Qualifying taxpayers are about to see a $750 increase in their bank accounts very soon. On August 24, the IRS agency issued a notice, Notice 2022-36, that will be providing penalty relief to 1.6 million Americans who filed their tax returns late in 2019 and 2020 during the COVID-19 pandemic. In order to qualify for tax penalty relief, these are the steps that taxpayers must take.
How Do Taxpayers Qualify?
In order to be qualified for this relief, taxpayers must file any eligible income tax return on or before September 30, 2022. Along with individual taxpayers, the IRS is also offering relief to banks, employers, and other businesses that filed information tax returns such as the ones in the 1099 series. In those cases, eligible 2019 returns will have to have been filed by August 1, 2020, and 2020 returns by August 1, 2021.
When Will The Refund Be Distributed?
According to the IRS, "many" refunds will be given to the almost 1.6 million individuals who already paid the penalty and will be automatically refunded by the end of September.
Penalty Relief Will Be Automated
Just last month, IRS Commissioner Chuck Rettig issued a statement saying, "Throughout the pandemic, the IRS has worked hard to support the nation and provide relief to people in many different ways; 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."
With that being said, penalty relief is automatic, meaning eligible taxpayers don’t need to apply for it. Penalties that have already been assessed will be abated, while those that have been paid will be refunded to taxpayers.
Why Is The IRS Issuing A Penalty Relief Now?
The Internal Revenue Service has intentions of re-focusing its resources on processing backlogged tax returns to help return to normal tax operations for the following 2023 filing year hence helping out more than a million U.S. citizens who filed their taxes late in the early days of the COVID-19 pandemic outbreak. Approximately 7.6 million paper returns were among the 9.3 million individual tax returns that the IRS had yet to complete as of August 12, 2022. The IRS has set a target date of December 31, 2022, for reaching “healthy” inventory levels.
Resolve Your Tax Bills
If you've found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there's a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
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