NEWS RELEASE

IRS Will Waive Penalty Fees for Rim Country Residents and Businesses that Owe Back Taxes for 2020 and 2021

Wayne Reeves CPA

CONTACT
Wayne Reeves, CPA
info@coronadoaccounting.com
928-474-0011

The Internal Revenue Service announced that it plans to go after non-filers. http://www.irs.gov/newsroom/irs-increasing-focus-on-taxpayers-who have-not-field-tax-return

PAYSON, Ariz. (Dec. 26, 2023) — IRS announced that it will start this week to waive penalties for people, businesses, and non-profit organizations that failed to pay back taxes totaling less than $100,000 per year for tax years 2020 and 2021, according to Wayne Reeves, CPA, President of Coronado Accounting Experts LLC.

“Up to 20% of Payson taxpayers are running behind on staying current with the IRS,” says Reeves. “A majority of these taxpayers are sole proprietors who own and operate businesses.”

Many of these business owners couldn’t afford to pay their taxes and didn’t file tax returns, a group the IRS terms “non-filers.” IRS suspended mailing automated reminders to pay overdue tax bills during the pandemic, beginning in February 2022. That’s when agency leadership says the pause in automated reminders is a reason behind the decision to forgive the failure-to-pay penalties.

Just because the automated reminder notices were suspended, the penalties continued to pile up on taxpayers who did not fully pay their bills in response to the initial balance-due notice.

IRS will again start sending out collection notices, so doing some advance planning with their accountant, non-filers can take advantage of legal ways to minimize income and Social Security taxes, recommends Reeves.

Taxpayers will get automatic relief if  they filed a Form 1040, 1041, 1120 series or Form 990-T tax return for years 2020 or 2021,  they owe less than $100,000 per year in back taxes, and  got a balance-due notice between Feb. 5, 2022 and Dec. 7, 2023. People who paid the failure-to-pay penalty will get a refund.

“It’s important for these individuals to have peace of mind that the IRS will not be contacting and following up with them to fulfill their legal obligation.”

Reeves has also written “Nine Disasters You Face When You Don’t File Your Tax Return with the I.R.S.” To receive a free copy by mail, call 928-474-0011 or email info@coronadoaccounting.com.

Wayne Reeves is a CPA and holds a Masters in Accountancy from BYU.

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