Given ongoing processing delays, pandemic constraints, the IRS is providing a one-time relief payment for penalty fees they charged related to late filings of 2019 or 2020 federal returns.
The total value of these penalties is estimated at $1.2 billion, meaning millions of tax filers will be getting a IRS refund payment in 2022.
The average refund in failure-to-file penalties will be about $750, according to the IRS. To qualify for this relief, any eligible income tax return must have been or be filed on or before September 30, 2022. You can efile for free in most cases.
“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. “The penalty relief issued…is yet another way the agency is supporting people during this unprecedented time.”
If you have already filed and paid the late fees, the IRS will automatically start sending additional refund checks for the previously applied late fees. If the penalty was already assessed, but not paid by the tax payer, they will be cancelled.
Most eligible taxpayers will receive their refunds by the end of September 2022, according to the IRS.
Nearly 1.6 million Americans will or have automatically gotten these additional payments. There is no need to call the IRS unless your payment is not received by the end of 2022.