IRS announced a new relief program under its “Fresh Start” initiative. Unemployed taxpayers and some qualified self-employed can take advantage of this relief program. (IR 2012-31).
What Kind of Relief Can You Get and Who Qualifies?
According to a recent post on the IRS website: You can relief from the failure-to-pay penalty and is available to two taxpayer classes. Please note it is subject to your AGI limits.
What can you do to get this relief?
Does this cover all penalties and interest?
No, You are still subject to other penalties and interest. Also note that the failure-to-file penalty will still be in effect, so taxpayers must timely file. We recommend you contact your tax professional in advance to make sure what kind of relief you can qualify for. As always, you should avoid having to deal with IRS penalties and interest.
One more good news for those who do plan on paying taxes late this year?
IRS has also introduced a new threshold for simple installment agreements from $25,000 to $50,000. You can learn more about this program by visiting the IRS website.