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The IRS is forgiving about $1 billion in failure-to-pay tax penalties across 5 million tax returns. Could you qualify for forgiveness?

4.7 Million Americans to Have Tax Penalties Erased – Could You Qualify?

The Internal Revenue Service (IRS) recently announced an initiative to forgive about $1 billion in failure-to-pay tax penalties across 5 million tax returns.

The new penalty relief initiative applies to approximately 4.7 million individuals who make under $400,000 a year.

The IRS imposed millions of failure-to-pay penalties on taxpayers in 2020 and 2021 without notifying them. This program provides the forgiveness that those Americans deserve.

While savvy taxpayers have taken advantage of this program since January 2024, millions of eligible people have yet to claim their forgiveness.

Penalty Relief to Help Taxpayers Left in the Dark During Pandemic

The COVID-19 pandemic placed unprecedented strain on the IRS’ ability to process tax documents, so the agency stopped sending tax bill notices in February 2022. Despite this suspension, the IRS continued to assess failure-to-pay penalties on applicable accounts.

This resulted in an expanding balloon of tax debt for people unaware of their debt in the first place. Many of them have suffered from IRS collections, penalties, and harassment without realizing that they qualified for relief.

As a form of compromise, the IRS’ new penalty forgiveness program seeks to correct those mistakes by forgiving the extra penalties assessed on unknowing taxpayers.

“As the IRS has been preparing to return to normal collection mailings, we have been concerned about taxpayers who haven’t heard from us in a while suddenly getting a larger tax bill,” said IRS Commissioner Danny Werfel.

Discover if You Qualify for Tax Penalty Relief

With a broad range of eligible taxpayers, there is a significant likelihood that you may qualify to have your failure-to-pay penalties forgiven. Take our brief Tax Relief Survey to determine if this tax forgiveness program applies to your situation.

STEP 1: Click here to begin the quick survey
STEP 2: Answer a few questions to see if you qualify to resolve your tax penalties

NOTE: This tax penalty forgiveness program applies to failure-to-pay penalties assessed during the pandemic and does not apply to all tax penalties. The program is also not guaranteed to remain available for any specified time period. Take advantage of the program while you can.