Staff Reports
The Internal Revenue Service (IRS) has decided to forgive late filers' penalty totaling $1.2 billion.
A tax refund of approximately $750 will be issued to each of the almost 1.6 million individuals and businesses that are eligible to receive one.
Forbes reported:
As the Internal Revenue Service (IRS) battles with a significant Covid-imposed backlog that has irritated taxpayers and lawmakers alike, the agency said on Wednesday that it will waive and refund fines for Americans who filed their tax returns for 2019 or 2020 late.
According to a statement released by the organization, nearly 1.6 million taxpayers who have already paid failure to file penalties for their 2019 or 2020 returns will have those payments automatically refunded by the end of the following month, bringing the total amount of refunds to more than $1.2 billion.
Taxpayers must have filed their tax returns for either 2019 or 2020 by September 30 of current year in order to qualify.
According to a report in the Epoch Times:
If a taxpayer does not submit their return by the deadline, they will be subject to a failure-to-file penalty. The amount of the fine is equal to a percentage of the taxes that were not paid on time. It is computed as 5 percent of the taxes that remain outstanding for each month or portion of a month that the return is filed late, up to a maximum of 25 percent of the taxes that remain unpaid.
For instance, a penalty of $500 per month could be assessed for delinquent taxes totaling $10,000, with a maximum of $2,500 being levied.
Taxpayers who want to be eligible for the refunds must submit any tax returns for 2019 or 2020 by the 30th of September of this year, even if those returns were originally due in 2020 or 2021.
There are several instances in which the fines will not be reduced or waived at all.
These include situations in which the fines were established by a court, situations in which the penalties were not paid, and fraudulent tax returns that were submitted.
The preceding is a summary of an article that originally appeared on GATEWAY PUNDIT.
