FAQs for Disaster Victims - Penalty and Interest |
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(6/1/07) Q: Is there any interest relief for taxpayers who have balances due that arise during the disaster relief period for prior year returns?
A: No. The IRS policy on the waiver of interest does not apply to balances due on prior year liabilities. However, the IRS will consider waiving late payment penalties when the reason for the late payment is due to the disaster. Although liabilities continue to accrue, taxpayers who have installment agreements with IRS will be granted additional time to make their monthly installment payments.
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Page Last Reviewed or Updated: July 22, 2008