The Classy Investors

  /  Economy   /  “Receive Relief From the IRS: Get A New Tax Break If You Faced A Penalty During the Pandemic

“Receive Relief From the IRS: Get A New Tax Break If You Faced A Penalty During the Pandemic

If, due to the economic hardship of the pandemic, you find yourself facing a tax penalty from the Internal Revenue Service (IRS), there is good news: they have recently announced a new program offering relief. The IRS has announced a special Covid-19 relief program, which provides taxpayers with a one-time penalty relief from April 1, 2020 to December 31, 2020, for any penalty assessed on unpaid taxes in the 2020 fiscal year. For those that find themselves in a tough spot financially due to the pandemic, this is a welcome relief and could potentially eliminate any worries associated with the IRS’s usual harsh penalties. If you are eligible, the relief program gives you a waiver of late fees if you pay your bill by the due date and eliminates any penalty assessments if you make your payment by the end of the year. The program is also applicable on any unpaid balances due to past tax debt or other IRS penalties and assessments, such as those for failure to file or pay. To apply for relief, you must submit an online form, providing proof that you were affected financially by the pandemic. If you are approved, you will receive confirmation that your penalties and interest will be waived. The program is also applicable to self-employed individuals who are filing sole proprietorship tax returns and owe taxes or have an unpaid balance on any related tax debt. The relief only applies to IRS penalties, not to any outstanding balances on state or local taxes. The IRS understands the hardships that many are facing due to Covid-19 and this relief program is one way that they are attempting to provide a measure of assistance to those struggling to make ends meet. This one-time offer of assistance is a welcome relief and can help taxpayers avoid making any further daunting financial commitments to the IRS during this difficult time.