The IRS Waives $1.2 Billion in Late Fees. How You Can Take Advantage

If you haven’t filed your federal tax returns yet, or filed them later than you should have during the pandemic, you’re in luck. The IRS is issuing a refund for any late fees you paid. It’s also automatically waiving late-filing penalties currently. The agency says this amounts to about $1.2 billion dollars.

One way taxpayers can take advantage of this waiver is to apply credits for the waived fees to outstanding tax balances. Most people who haven’t filed also typically owe back taxes. The two often go hand in hand. The fee waiver gives a unique opportunity to taxpayers to apply this money towards those back taxes, with an eye on preparing to meet all future filing requirements.