The Internal Revenue Service announced last week additions to its Fresh Start program for struggling taxpayers. The new features include penalty relief for the unemployed and expanded installment-payment options. The agency began the Fresh Start program in 2008. (Star Trubine)
The penalty relief for unemployed taxpayers is for "failure to pay" levies, which the IRS says are one of the biggest expenses financially distressed taxpayers face on a tax bill.
The relief grants a six-month grace period to pay taxes to those who have been unemployed for at least 30 consecutive days during 2011 or in 2012 up to this year's April 17 filing deadline. The same grace period applies to self-employed workers who business income fell 25% or more in 2011.
Taxpayers who qualify for this break do not have to pay tax owed for 2011 until Oct. 15, 2012. Ordinarily, payments this year are due by April 17 with unpaid balances subject to a penalty.
To get the benefit, taxpayers must file Form 1127A (www.irs.gov/form1127).
Anybody heard of this?
The penalty relief for unemployed taxpayers is for "failure to pay" levies, which the IRS says are one of the biggest expenses financially distressed taxpayers face on a tax bill.
The relief grants a six-month grace period to pay taxes to those who have been unemployed for at least 30 consecutive days during 2011 or in 2012 up to this year's April 17 filing deadline. The same grace period applies to self-employed workers who business income fell 25% or more in 2011.
Taxpayers who qualify for this break do not have to pay tax owed for 2011 until Oct. 15, 2012. Ordinarily, payments this year are due by April 17 with unpaid balances subject to a penalty.
To get the benefit, taxpayers must file Form 1127A (www.irs.gov/form1127).
Anybody heard of this?
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