The IRS has announced new penalty relief for approximately 4.7 million individuals, businesses, and tax-exempt organizations who did not receive automated collection reminder notices during the pandemic. The relief, totaling around $1 billion, primarily benefits those earning under $400,000 annually. To assist affected taxpayers, the IRS will issue special reminder letters starting next month, providing liability information, payment options, and penalty relief details. The relief is automatic and applicable to eligible taxpayers with assessed tax under $100,000, and the failure-to-pay penalty will resume on April 1, 2024. Taxpayers not eligible for automatic relief can explore existing penalty relief procedures, while the IRS plans to resume collection notices in 2024.

If you would like to read more, please visit:

https://www.irs.gov/newsroom/irs-helps-taxpayers-by-providing-penalty-relief-on-nearly-5-million-2020-and-2021-tax-returns-restart-of-collection-notices-in-2024-marks-end-of-pandemic-related-pause