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North America
The IRS has provided relief from failure-to-pay penalties to nearly 5m taxpayers during the pandemic, as detailed in a report from TIGTA. The IRS temporarily suspended certain automated collection notices in February 2022, but penalties continued to accrue. In December 2023, the IRS announced it would waive these penalties for eligible taxpayers. TIGTA found that over 99% of eligible taxpayers received the relief. The IRS identified around 4.9m individuals and organizations eligible for approximately $1bn in penalty relief for tax years 2020 and 2021. Lia Colbert, commissioner of the IRS's Small Business/Self-Employed Division, stated: "We have already adjusted these taxpayers' accounts so that these taxpayers also benefit from the penalty relief." TIGTA recommended further actions to ensure all eligible taxpayers receive the relief.
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