IRS Waives $1 Billion in Late Tax Penalties for Millions of Low- and Middle-Income Filers
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IRS is waiving failure to pay penalties for 4.7 million taxpayers who haven't paid 2020 or 2021 taxes. This could benefit crypto users who didn't report crypto income.
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Failure to pay penalty is 0.5% of unpaid taxes per month after filing deadline. Waiver estimated to save taxpayers $1 billion.
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Eligible taxpayers made under $100k in 2020 or 2021. Some higher incomes included if tax assessed under $100k.
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IRS sending letters now informing taxpayers of waiver. Penalty relief automatic if eligible.
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Waiver program lasts through end of March. Late fees return April 1 for all taxpayers.