Tax season is in full swing. With several filing options and a potentially larger Child Tax Credit to claim, there’s a lot to know before you file. Optima CEO David King and Lead Tax Attorney Philip Hwang provide a comprehensive guide for the 2024 tax filing season and show you how you can get the most when filing your tax return.
Today, Phil discusses the 2024 tax season, including penalty relief and who qualifies for it.
The IRS is providing $1 billion in penalty relief to nearly 5 million 2020 and 2021 tax returns. To qualify, you must owe less than $100,000 on either year’s tax return. This amount includes penalties and interest. Finally, you must have received a CP14 notice from the IRS informing you of a balance due.
The relief will come in the form of waivers for failure-to-pay penalties. Eligible taxpayers will automatically receive penalty abatement in their online accounts with no further action needed. You will then have until March 31, 2024, to pay back all your unpaid taxes. If the balance is not paid, the failure to pay penalty will begin to accrue again.
Tune in next Friday as Phil covers his top 5 tax tips for 2024!