The IRS is providing refunds to some 1.6 million taxpayers who missed the tax filing deadline for 2019 and 2020. Typically, the IRS penalizes people who file their taxes late without an extension up to 25% of the amount they owe (5% per each calendar month the tax return is late). The tax agency announced last week that it was waiving the penalties for taxes filed late for the years of 2019 and 2020. Taxpayers do not need to do anything to receive this administrative relief if they have already filed. However, there is a deadline to qualify for the penalty refund. Individuals who have not yet filed returns for the years of 2019 or 2020 must do so by September 30th. Other penalties, such as the failure to pay penalty or accuracy-related penalties, are not eligible, but taxpayers may use existing penalty relief procedures for some types of penalties, such as under the reasonable cause criteria or the First Time Abate program. Interest on late tax payments and estimated tax penalties are almost never eligible for relief. People who have already paid the penalty will receive an automatic refund. Most refunds will be sent out by the end of September 2022. https://www.taxpayeradvocate.irs.gov/.../nta-blog-the.../
