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IRS to waive $1B in penalties
IRS to waive $1B in penalties for back taxes owed
Nearly 5M people, firms will be eligible for relief.
ASSOCIATED PRESS
WASHINGTON – The IRS said Tuesday it is going to waive penalty fees for people who failed to pay back taxes that total less than $100,000 per year for tax years 2020 and 2021.
Nearly 5 million people, businesses and tax-exempt organizations – most making under $400,000 per year – will be eligible for the relief starting this week, which totals about $1 billion, the agency said.
The IRS temporarily suspended mailing automated reminders to pay overdue tax bills during the pandemic, beginning in February 2022, and agency leadership says the pause in automated reminders is a reason behind the decision to forgive the failure-to-pay penalties.
“Due to the unprecedented effects of the COVID-19 pandemic, these reminders would have normally been issued as a follow up after the initial notice,” the IRS said in a statement.
“Although these reminder notices were suspended, the failure-to-pay penalty continues to accrue for taxpayers who did not fully pay their bills in response to the initial balance due notice.”
While the IRS plans to resume sending out normal collection notices, the Tuesday announcement is meant as one-time relief based on the unprecedented interruption caused by the pandemic, IRS officials said.
Taxpayers are eligible for automatic relief if they filed a Form 1040, 1041, 1120 series or Form 990-T tax return for years 2020 or 2021, owe less than $100,000 per year in back taxes, and received an initial balance-due notice between Feb. 5, 2022 and Dec. 7, 2023.
If people paid the failure-to-pay penalty, they will get a refund, Werfel said on a call with reporters. “People need to know the IRS is on their side,” he said.
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Important Quickbooks Desktop Product Changes!
Important Quickbooks Desktop Product Changes!
Quickbooks recently announced that starting after July 31, 2024, Intuit will no longer sell NEW subscriptions of the following Desktop products in the US:
- QuickBooks Desktop Pro Plus
- QuickBooks Desktop Premier Plus
- QuickBooks Desktop Mac Plus
- QuickBooks Desktop Enhanced Payroll
Intuit is not changing:
- Existing Desktop Pro Plus, Premier Plus, Mac Plus, and Enhanced Payroll subscribers who may continue to renew their subscription after July 31, 2024. They will continue to provide security updates, product updates, and support for existing subscribers for the time being.
- All QuickBooks Desktop Enterprise subscriptions will also continue to be available for purchase for new subscribers after July 31, 2024.
Quickbooks is encouraging current Desktop clients to move to QuickBooks Online. We realize that some customers may prefer to stay on Desktop at this time which is still an option.
The non-subscription versions (2021 Version or older) of QuickBooks Desktop Pro, Premier, or Mac will still be functional however their versions will not be supported by Intuit.
If you have Pro Plus or Premier Plus and have been considering Desktop Payroll, we recommend purchasing a QuickBooks Enhanced Payroll subscription before July 31, 2024 or upgrade to QuickBooks Enterprise which includes integrated Payroll and can be purchased after July 31, 2024. Alternatively, QuickBooks Online Payroll is available to Desktop clients and is a standalone full-service payroll solution that also offers HR support, Health and 401K benefits.
If you already have a subscription version of Quickbooks (2022 or later), we recommend that you upgrade to the latest version of the software by July 31, 2024. QuickBooks Desktop 2024 includes the latest features and security updates. If you are on an active QuickBooks Desktop Plus subscription, you have access to QuickBooks Desktop 2024 with no additional charge as you simply have to install the update.
We wanted to share this note from QuickBooks as it pertains to their decision:
“We appreciate our customers loyalty to the Desktop platform over the years, and we will continue to support those customers on a Desktop subscription after July 31, 2024. However, we highly encourage you to prepare for the future by moving online. There are many benefits enabled by an online platform that can’t be realized through desktop software, including time savings, the flexibility to work from anywhere, and a customizable ecosystem of connected business solutions.
Thank you for your business and your continued support of QuickBooks”
If you have questions or concerns – please email or call our on-site QuickBooks ProAdvisor Kristen Matkowsky at Kmatkowsky@g3cpa.com / 856-727-0100