Those affected were not sent automated collection reminder notices during the pandemic, with most making less than $400,000 annually.  Although reminder notices were suspended starting in February 2022 failure-to-pay penalty continued to accrue for taxpayers who failed to pay taxes due in full after an initial notice.

The IRS is taking several steps before it resumes normal collection notices for tax years 2020 and 2021. This includes sending special reminders this month. Taxpayers will be notified of the amount they owe, ways to pay and amount of any penalty relief.

The IRS has adjusted eligible individual accounts and planned to follow with adjustments to business accounts last month and this month and then then trusts, estates and tax-exempt organizations in late February to early March.

Taxpayers not eligible for automatic relief can utilize existing penalty relief procedures, such as applying for relief under the reasonable cause criteria or the First-Time Abate program.

Bob Scott

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Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind