In a surprising twist, the IRS is playing at being Santa, announcing a
generous move to forgive penalties on back taxes for 2020 and 2021. If your tax
evasion sins amount to less than $100,000 per year, rejoice – the IRS is here
to sprinkle its benevolence upon you.
The IRS, more often seen as the financial boogeyman, especially if you’re the crypto industry, is putting on a
softer face this Christmas season, declaring that it will waive penalty fees
for those who haven’t paid up to $100,000 in back taxes for the tax years 2020
or 2021. Cue the collective sighs of relief from nearly 5 million eligible
individuals, businesses, and tax-exempt organizations, particularly those
scraping by on less than $400,000 annually. All this is despite a whopping $688 billion tax gap being discovered for 2021.
IRS to waive $1 billion in penalties for millions of taxpayers. Here’s who qualifies https://t.co/puovuaFaaR
— CBS MoneyWatch (@CBSMoneyWatch) December 19, 2023
Pandemic Reprieve: The Unseen Culprit
Blame it on the pandemic! The IRS points fingers at the COVID-19 chaos,
revealing they temporarily halted their robot-like reminders for outstanding
tax bills from February 2022. Now, those automated nudges are back in action,
but the IRS is feeling generous, ready to let bygones be bygones, and pardoning
approximately $1 billion in penalties.
In a magnanimous move, IRS Commissioner Daniel Werfel stated that this
unique act of forgiveness doesn’t require citizens to jump through bureaucratic
hoops – it’s an automatic reprieve for those who qualify. If your financial
sins fit the criteria – less than $100,000 owed for 2020 or 2021 – and you
filed the right tax return forms, consider the IRS your newfound ally.
So, here’s a friendly PSA from the IRS: “People need to know the
IRS is on their side,” says Werfel. If you’ve felt the sting of their
financial whip, this might be your chance for redemption.
You can read the official notice, here.
In a surprising twist, the IRS is playing at being Santa, announcing a
generous move to forgive penalties on back taxes for 2020 and 2021. If your tax
evasion sins amount to less than $100,000 per year, rejoice – the IRS is here
to sprinkle its benevolence upon you.
The IRS, more often seen as the financial boogeyman, especially if you’re the crypto industry, is putting on a
softer face this Christmas season, declaring that it will waive penalty fees
for those who haven’t paid up to $100,000 in back taxes for the tax years 2020
or 2021. Cue the collective sighs of relief from nearly 5 million eligible
individuals, businesses, and tax-exempt organizations, particularly those
scraping by on less than $400,000 annually. All this is despite a whopping $688 billion tax gap being discovered for 2021.
IRS to waive $1 billion in penalties for millions of taxpayers. Here’s who qualifies https://t.co/puovuaFaaR
— CBS MoneyWatch (@CBSMoneyWatch) December 19, 2023
Pandemic Reprieve: The Unseen Culprit
Blame it on the pandemic! The IRS points fingers at the COVID-19 chaos,
revealing they temporarily halted their robot-like reminders for outstanding
tax bills from February 2022. Now, those automated nudges are back in action,
but the IRS is feeling generous, ready to let bygones be bygones, and pardoning
approximately $1 billion in penalties.
In a magnanimous move, IRS Commissioner Daniel Werfel stated that this
unique act of forgiveness doesn’t require citizens to jump through bureaucratic
hoops – it’s an automatic reprieve for those who qualify. If your financial
sins fit the criteria – less than $100,000 owed for 2020 or 2021 – and you
filed the right tax return forms, consider the IRS your newfound ally.
So, here’s a friendly PSA from the IRS: “People need to know the
IRS is on their side,” says Werfel. If you’ve felt the sting of their
financial whip, this might be your chance for redemption.
You can read the official notice, here.
