IRS Expands “Fresh Start” for Unemployed

by Kelley Owen 16. March 2012 08:15
  In order to help struggling tax payers, the IRS announced a major expansion of its “Fresh Start” initiative. This will provide new penalty relief to the unemployed and make installment agreements available to more people.   Under the expansion, certain tax payers who have been unemployed for 30 days or longer will be able to avoid failure-to-pay penalties. The dollar threshold for taxpayers eligible for installment agreements would be doubled, increasing the number of people who would qualify for the program.   One of the biggest factors a financially distressed taxpayer faces on a tax bill is the failure-to-pay penalties. A six-month grace period will be made available for certain tax payers. However, even with the new penalty relief available, the IRS continues to encourage taxpayers to file on time, or request an extension.   Expanding the installment agreements will allow more tax payers the ability to catch up on back taxes. The agreement will allow those who owe up to $50,000 in back taxes to enter into a streamlined agreement that stretches the payment out over a series of months or years, which will reduce the tax payer’s burden.   To read more about the changes in the “Fresh Start” initiative and the specific changes to the failure-to-pay penalties and installment agreements, see the full article on the IRS’ website.
Categories: Tax