2011 Tax Debt Program

: Chris Lee Law Firm

  Filed under: Tax Debt

tax debtThis year taxpayers will get a chance to participate in a new IRS program designed to help those who cannot afford to pay their tax debts. Deemed the Fresh Start initiative, the IRS is granting eligible taxpayers two new ways to manage their tax debts this season.

Don’t Forget The Form

The IRS will be working harder than usual this year to provide taxpayers with help paying their tax bill. First, taxpayers may be able to file an extension on their taxes, giving them until October 15, 2012 to pay their taxes. This extension provides more time than the traditional extension, allowing for more time to review tax liabilities or save up the money to pay the debt. In order to apply for this extension, taxpayers must complete the program Form 1127A and the extension Form 4868 by April 17, 2012. Failure to file the form by the deadline could result in interest fees and penalties from the original due date of the taxes.

Second, the taxpayer can obtain a waiver of the failure to pay penalty up until the October 15 deadline. Normally, this penalty can apply a 1/2 of 1% penalty fee on the unpaid balance, increasing by a 1/2  a point each month. Waiving this fee can save the taxpayer 3% in penalties. Qualifications for this program require that the taxpayer (a) have been unemployed for at least 30 consecutive days during 2011-April 17, 2012 or (b) be self employed individuals who experienced a 25% or more reduction in business income due to the economy.

 


Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Foreclosure
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information