IRS Waives Failure to Pay Penalty for Millions of Taxpayers, Including Crypto Users

According to Decrypt, the Internal Revenue Service (IRS) has announced that it will waive its standard 'failure to pay' penalty for over 4.7 million tax filers who haven't paid their 2020 or 2021 taxes. This move is expected to save taxpayers a collective $1 billion. As a result, many crypto users who have yet to declare their crypto income from 2020 or 2021 can now pay taxes on those gains without owing a significant amount in late fees. The penalty relief primarily applies to individuals who made under $100,000 in 2020 or 2021, though some with higher incomes will also be included. The IRS will send letters to applicable taxpayers this month, informing them of their inclusion in the program. The penalty relief will be automatic, and eligible taxpayers who already paid late penalties for the applicable years will be refunded the full amount of those charges. However, the program will only last from now through the end of March, after which the IRS' monthly late fee will return for all taxpayers.