IRS Penalty Relief

The IRS just gave us some good news and possibly some bad news. The IRS recently announced that approximately 4.7 million taxpayers may get IRS penalty relief for 2020 and 2021 late payment penalties.  The bad news (at least for some taxpayers) is the IRS announced it plans to resume the collection activities it suspended at the onset of the COVID-19 Pandemic.

The Taxpayers that qualify for relief are individual taxpayers and corporate taxpayers that had a tax due (excluding penalty and interest) of less than $100,000 per year. Taxpayers eligible for the penalty relief also must have received a balance due notice from the IRS before December 7, 2023.

The IRS states it will automatically grant relief to Taxpayers and Taxpayers need not take any action to apply for the relief. The relief will only apply to late payment penalties. The relief will not apply to other penalties including late filing penalties, accuracy penalties, or fraud penalties. The IRS relief will also not apply to interest.

Collections to Ramp up in 2024

The bad news (at least for some taxpayers) is the IRS announced it is taking the gloves off and ramping up collection and enforcement its pre-pandemic status. At the onset of the pandemic, the IRS stopped virtually all collection activities. As the pandemic progressed, the IRS slowly resumed “normal” activity. The latest notice indicates the IRS plans to go full speed ahead with its collection and enforcement activities. Among other things, the IRS intends to resume the practice of sending automated collection notices.

The new year brings new opportunities. Today can be the day you decide to grab the bull by its horns and tackle your tax debt issues. RJS LAW’s qualified and experienced tax attorneys are available for a free consultation. If you need help addressing your tax problems, or would like to discuss any tax or issues, please call us at 619-595-1655 or via the web at RJS LAW.  Be proactive, take initiative, and deal with the IRS on your terms.

Written by Joseph Cole, Esq., LL.M.