Tax professionals nationwide are asking the IRS to relieve the headaches of penalties and collection notices due to delays with IRS processing in 2020 and 2021.

The four measures requested are:

  • Discontinue automated compliance actions until the IRS is prepared to devote the necessary resources for a proper and timely resolution of the matter.
  • Align requests for account holds with the time it takes the IRS to process any penalty abatement requests.
  • Offer a reasonable cause penalty waiver, similar to the procedures of first time abate (FTA) administrative waiver, without affecting the taxpayer’s eligibility for FTA in future tax years.
  • Provide taxpayers with targeted relief from both the underpayment of estimated tax penalty and the late payment penalty for the 2020 and 2021 tax year.

Check out Ken Berry’s full article on AccountingWEB here.