Notice 2024-07, which offers qualified taxpayers automatic relief from the additions to their tax liabilities for the failure to pay penalties for particular income tax returns for 2020 and 2021, was recently published by the Internal Revenue Service (IRS). (Photo: The Epoch Times)
Notice 2024-07 Offers Significant Financial Relief by Waiving IRS Penalties for Eligible Taxpayers
Notice 2024-07, which offers qualified taxpayers automatic relief from the additions to their tax liabilities for the failure to pay penalty for particular income tax returns for 2020 and 2021, was recently published by the Internal Revenue Service (IRS). About 4.7 million people, companies, and tax-exempt organizations are served by this benefit.
The scope of the notice, spanning seven pages and divided into three sections, provides pivotal relief mechanisms. Of particular significance is Section III–Grant of Relief, which contains Subsections A and B. Subsection A defines eligible taxpayers as those whose assessed income tax for taxable year 2020 or 2021, as of December 7, 2023, is less than $100,000 (excluding applicable additions to tax, penalties, or interest). Furthermore, an eligible taxpayer must have received an initial balance due notice on or before December 7, 2023, and be liable during the relief period for accruals of additions to tax for failure to pay under § 6651(a)(2) or 6651(a)(3) for eligible returns.
For eligible taxpayers, the additions to tax will be waived or, if previously assessed or paid, will be abated, refunded, or credited to other outstanding tax liabilities as appropriate for the relief period. This relief period commences from the date the IRS issued an initial balance due notice or February 5, 2022, whichever is later, and concludes on March 31, 2024.
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The financial impact and relief provided by this notice serve as a valuable reprieve for many individuals and organizations affected by tax liabilities, marking a significant development in tax regulation for the specified tax years.
The IRS’s initiative to alleviate tax pressures on eligible taxpayers through Notice 2024-07 is a welcome relief and aims to have positive ripple effects on the financial well-being of millions of individuals and organizations.
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