What we don’t know yet is the entire scope of this ruling, but it COULD mean:

All penalties and interest, including late filing penalties, payroll tax penalties, late payment penalties could be included – some have even suggested that fines for missing informational reports could be included in this ruling.

This may include penalties and interest charged on tax years prior to COVID years that were still accruing interest and penalties during the COVID period.

The time period in question ended July 10, 2023. This means that all forms asking for penalty abatement must be filed by July 10, 2026 or it is too late to ask for a refund. You need to jump on this as soon as possible to allow the forms to be prepared by 7/10/26.

You can check your IRS account by going to: https://www.irs.gov/payments/online-account-for-individuals and looking at account transcripts. These will indicate interest and penalty that has been assessed and for what period.

NO – Vashon Island Professionals has neither the time nor the experience to properly file these penalty abatement requests.

One firm that has been “vetted” by a professional in this area is PenaltyBack.com This site charges a 25% fee based on your refund amount. If you do not get a refund, they will not charge you.

If you use our link, we will get 5% from them that we will return to you – dropping the fee to 20%. Our link is https://penaltyback.com/r/vip

While 20% seems like a high amount, their calculations have been shown to be accurate and they will calculate the money, prepare and mail the forms by certified mail once signed. That 20% is likely much less than a different tax professional would charge for preparing these even for claims of $10,000 or more.