The IRS has just announced (August 24, 2022) that it is dropping a huge penalty. The penalty being dropped is the “failure to file penalty” which could have added as much as 25% to your tax bill.
The IRS is dropping the failure to file penalty for two specific tax years: 2019 and 2020.
There is a big condition attached to the deal, however. If you haven’t filed your 2019 or 2020 tax return yet, you have to do it now.
THE DETAILS
Here are the details. If you still have not filed a 2019 or 2020 tax return the IRS is now dropping the failure to file penalty of 5% a month up to 25% of the tax owed. But to get this tax break you must file your 2019 or 2020 return by the end of September 2022.
If you filed your 2019 or 2020 tax return late and you paid the late filing penalty, the IRS will refund the penalty to you automatically. You don’t have to do anything to get this refund if your return was filed.
The IRS estimates more than a billion dollars will be refunded.
The IRS says these refunds are supposed to help taxpayers hurt by the Covid pandemic. There will also be refunds for businesses who filed their returns late.
OTHER TAX HELP
There are other ways that you can get help from the IRS and we would like to discuss them with you in a free consultation. Give us a call so we can discuss options to pay down or remove your IRS tax debt. The IRS Fresh Start Initiative might be available to you, and you might be able to make an Offer In Compromise to pay down or eliminate your tax debt. The IRS Fresh Start Initiative and Offer In Compromise program are available now and our advice is to look into these options before the IRS makes any changes to them. In 15 minutes or less we can discuss with you how the Fresh Start Initiative and Offer In Compromise programs work and if you are a good candidate for them. There are other options also available to pay down your IRS debt.