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IRS Will Wipe Away $1.2 Billion in Late Fees From Pandemic

  • IRS will issue refunds for penalties by end of September
  • Taxpayers who qualify will automatically receive refund
Internal Revenue Service tax forms.

Internal Revenue Service tax forms.

Photographer: Luke Sharrett/Bloomberg

The Internal Revenue Service announced Wednesday that it will wipe out late fees for taxpayers who struggled to file their tax returns on time during the pandemic. 

The IRS estimates that nearly 1.6 million taxpayers will receive more than $1.2 billion worth of penalty relief. The tax agency will automatically issue the refunds or credits for most of the fees by the end of September.