If you are finding yourself bogged down in tax debt, and are beginning to consider what debt negotiation options are available to you as you deal with the IRS, you need to know about the IRS new expansions in the “Fresh Start” initiative. According to a recent press release, the initiative will “help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making Installment Agreements available to more people.”
The initiative allows taxpayers to waive the failure-to-pay penalty until October 15, 2012, six months past the 2012 filing deadline. Though interest on unpaid tax debt will continue to accumulate, the waiving of this penalty fee will help some taxpayers as they go through the debt negotiation process.
Also, if you owe back taxes, you can now take up to six years to pay back up to $50,000 on a streamlined installment plan that doesn’t require any kind of proof of taxpayer burden. This is a huge shift from the previous ceiling of $25,000, and the allotted time of five years that was previously granted taxpayers for covering their tax debt.
Do I Qualify?
If you have been unemployed for a period longer than thirty days, you qualify for the penalty relief part of this initiative. Also, if you are self-employed and have seen a 25% or greater reduction in your business income in 2011 due to the economy, you also qualify.
If you already qualify for paying back taxes in an installment plan then you will continue to qualify under these new conditions.
Fill out IRS Form 1127A to get the penalty relief that can help you navigate successfully out of tax debt. Get going on debt negotiation today!