Filers of 1040, 1120, 1041, and 990-T tax returns for 2020 and 2021 will receive a failure to pay penalty relief if they were issued an initial balance due letter from the IRS between February 5, 2022 and December 7, 2023. If the penalty is still owed, it will be reduced. If already paid, it will be refunded. Penalties for failure to pay will resume on April 1, 2024. This does not cover failure to file penalties. If the taxpayers do not qualify for this failure to pay relief, there are still provisions, such as reasonable cause for filing or paying late, that can be used to reduce those penalties. In either case, interest will not be reduced due to reasonable cause. For more information, visit -IRS helps taxpayers by providing penalty relief on nearly 5 million 2020 and 2021 tax returns; restart of collection notices in 2024 marks end of pandemic-related pause | Internal Revenue Service.