IRS Penalty Kill

This isn’t about hockey but it’s close. With the COVID era behind us, the IRS has slowly resumed full operations. During the COVID era, the IRS stopped sending certain balance due reminder notices, however, the penalties for “failure to pay” (paying late) continued to accrue on these accounts.

The IRS recently announced that penalties for late payments will be abated for the period of time between February 5, 2022 and March 31, 2024. This includes current balances due, and balances already paid. If you paid the IRS for an account and it was late, and the payment included late payment penalties, these will mostly be refunded automatically. If you are still paying on these amounts, the penalty kill will reduce the amount due. 

This means you may get a “happy letter” from the IRS giving YOU money – instead of you paying them 😊 So if you see a letter form the IRS, do not be afraid!