IRS Announces Penalty Relief for Millions with Overdue Tax Balances from 2020-2021

The IRS is providing automatic penalty relief to 5 million taxpayers with overdue 2020 and 2021 tax balances. Taxpayers do not need to apply—penalties will be waived automatically. The relief applies only to balances under $100,000 per return and is valid until March 31, 2024. Those who already paid penalties may receive a refund. Taxpayers can check their updated balances via their IRS online account.