In a surprising twist, the IRS is playing at being Santa, announcing a generous move to forgive penalties on back taxes for 2020 and 2021. If your tax evasion sins amount to less than $100,000 per year, rejoice – the IRS is here to sprinkle its benevolence upon you.

The IRS's Magnanimous Gesture: Wiping the Slate Clean

The IRS, more often seen as the financial boogeyman, especially if you're the crypto industry, is putting on a softer face this Christmas season, declaring that it will waive penalty fees for those who haven't paid up to $100,000 in back taxes for the tax years 2020 or 2021. Cue the collective sighs of relief from nearly 5 million eligible individuals, businesses, and tax-exempt organizations, particularly those scraping by on less than $400,000 annually. All this is despite a whopping $688 billion tax gap being discovered for 2021.

IRS to waive $1 billion in penalties for millions of taxpayers. Here's who qualifies https://t.co/puovuaFaaR

— CBS MoneyWatch (@CBSMoneyWatch) December 19, 2023

Pandemic Reprieve: The Unseen Culprit

Blame it on the pandemic! The IRS points fingers at the COVID-19 chaos, revealing they temporarily halted their robot-like reminders for outstanding tax bills from February 2022. Now, those automated nudges are back in action, but the IRS is feeling generous, ready to let bygones be bygones, and pardoning approximately $1 billion in penalties.

In a magnanimous move, IRS Commissioner Daniel Werfel stated that this unique act of forgiveness doesn't require citizens to jump through bureaucratic hoops – it's an automatic reprieve for those who qualify. If your financial sins fit the criteria – less than $100,000 owed for 2020 or 2021 – and you filed the right tax return forms, consider the IRS your newfound ally.

So, here's a friendly PSA from the IRS: "People need to know the IRS is on their side," says Werfel. If you've felt the sting of their financial whip, this might be your chance for redemption.

You can read the official notice, here.