From the IRS family to yours, happy holidays.

I'm David Brancaccio.

With the New Year, your friends at the Internal Revenue Service

will resume sending reminder letters to people who owe the federal government from tax years

gone by.

These letters were paused during the pandemic and to avoid sticker shock when these

happy little notices start showing up in the mail, the IRS is waiving the penalties.

It usually charges for a stretch of back taxes.

This applies to tax years 2020 and 2021, Marketplace's Nova Safo reports.

The IRS says nearly 5 million taxpayers will get penalty waivers.

These penalties can range anywhere from 5% to 25% of the amount of tax owed.

That adds up to about $1 billion in penalties being waived.

You don't have to do anything to get a waiver.

The agency says it's already applied them to qualifying

individual taxpayer debts.

Businesses are next, followed by trusts, estates, and tax-exempt organizations.

The whole process is expected to last until early March and

only applies to assess tax of less than $100,000. Back taxes also accrue interest and by law

the IRS has to collect that money. The agency cannot

waive or reduce interest payments except in rare circumstances. I'm Novis-Offo

for Marketplace. You heard by mail if someone texts or telephones you saying they're the quote IRS to

arrange for you to pay right then on the phone with a credit debit or gift card it is a scam if you don't know why I felt the need to say that

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