Jan. 5, 2024 The IRS will automatically waive failure to pay penalties on unpaid taxes less than $100,000 for tax years 2020 or 2021. Your business or tax-exempt organization is likely eligible for this relief if you meet all the following criteria: Filed a Form 1120 series or Form 990-T tax return for years 2020 and/or 2021. Were assessed taxes of less than $100,000. Received an initial balance due notice, typically the CP161, between Feb. 5, 2022, and Dec. 7, 2023. For details, see Notice 2024-7 PDF. If your business owes more than $100,000, you can apply for penalty relief under the reasonable cause criteria or the First Time Abate program. For details, visit IRS.gov/penaltyrelief.
