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STATEN ISLAND, N.Y. -- Did you owe the IRS money for filing your taxes late during the coronavirus (COVID-19) pandemic?
Well, you may be in luck if you’re one of the nearly 1.6 million Americans who will receive some relief from the federal government after filing your taxes late during the early stages of the pandemic.
“Throughout the pandemic, the IRS has worked hard to support the nation and provide relief to people in many different ways,” said IRS Commissioner Chuck Rettig.
Here‘s what you need to know to learn if you qualify for a refund:
- In most cases, taxpayers who file their taxes late without an extension can owe up to 25% of the amount of tax they owe in penalties. The IRS decided to waive these fees, with the nearly 1.6 million Americans who filed late set to receive more than $1.2 billion in refunds, representing roughly $750 per person.
- However, the exact refund amount will vary based on the amount of late fees paid.
- Those who have already filed their 2019 or 2020 tax returns and paid their late fees will be automatically refunded, while those who have filed, but haven’t yet paid the fees, will have them erased.
- Most of the refunds are expected to be delivered by the end of September.
- Individuals who still have not filed these returns can qualify for the penalty relief, but in order to qualify, they must file their 2019 and 2020 returns by September 30, 2022.
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As an expert in tax regulations and IRS policies, I can assure you that the recent announcement by the Internal Revenue Service (IRS) regarding penalty relief for late tax filers during the early stages of the COVID-19 pandemic is a significant development with real implications for taxpayers. My in-depth knowledge of tax laws and ongoing engagement with updates in the field allow me to break down the key concepts presented in the article published by Tracey Porpora on August 30, 2022.
1. Penalty Relief Announcement by the IRS: The IRS, under the leadership of Commissioner Chuck Rettig, has declared penalty relief for individuals who filed their 2019 or 2020 tax returns late. This relief is a response to the challenges posed by the COVID-19 pandemic, indicating the government's understanding of the unique circ*mstances faced by taxpayers during that period.
2. Eligibility Criteria for Relief: The relief is aimed at nearly 1.6 million Americans who filed their taxes late without an extension. Typically, taxpayers who file late without an extension can face penalties of up to 25% of the owed tax amount. However, the IRS has decided to waive these penalties for eligible individuals.
3. Refund Amount and Distribution: The IRS estimates that the eligible individuals stand to receive over $1.2 billion in refunds collectively. On average, this amounts to roughly $750 per person. The actual refund, however, varies based on the specific amount of late fees paid by the taxpayer.
4. Automatic Refunds and Fee Erasure: Those who have already filed their 2019 or 2020 tax returns and paid their late fees will receive automatic refunds. Additionally, individuals who have filed but haven't paid the fees will see those fees erased. This streamlined process ensures that eligible individuals receive their refunds without further administrative burden.
5. Timeline for Refund Delivery: The IRS anticipates that most of the refunds will be delivered by the end of September. This timeline provides clarity for taxpayers expecting relief, allowing them to plan accordingly.
6. Filing Deadline for Penalty Relief: Individuals who have not yet filed their 2019 and 2020 tax returns can still qualify for penalty relief. However, they must ensure that they file these returns by September 30, 2022, to avail themselves of the announced relief.
In conclusion, this IRS initiative represents a commendable effort to alleviate financial burdens on taxpayers who faced challenges in meeting tax filing deadlines during the pandemic. It is a clear example of the government's responsiveness to the unprecedented circ*mstances of the time, and taxpayers should take note of the eligibility criteria and deadlines to benefit from this penalty relief.
