With The IRS Offering New Penalty Relief For Delinquent Tax Debts Under Broadened IRS Fresh Start Initiative, The Time To Take Action Is Now (Part 1)
IRS Fresh Start Initiative
The Tax Resolution Institute marks the announcement of the Internal Revenue Service in early march of a major expansion of the IRS Fresh Start initiative. By offering new penalty relief for delinquent tax debts, the IRS is making a legitimate effort to help struggling taxpayers. If you owe back income taxes and need help, the Tax Resolution Institute believes the time to take action is now by contacting us today for a free consultation.
New Provisions of IRS Fresh Start Initiative
Under the new provisions of the IRS Fresh Start initiative, part of a broader effort started at the IRS in 2008, certain taxpayers who have been unemployed for 30 days or longer will be able to avoid failure-to-pay penalties. In addition, the IRS is doubling the dollar threshold for taxpayers eligible for Installment Agreements to help more people qualify for the program. “We have an obligation to work with taxpayers who are struggling to make ends meet,” said IRS Commissioner Doug Shulman. ”This new approach makes sense for taxpayers and for the nation’s tax system, and it’s part of a wider effort we have underway to help struggling taxpayers.”
In addition, the IRS announced plans for new penalty relief for the unemployed on failure-to-pay penalties, which are one of the biggest factors a financially distressed taxpayer faces on a tax bill. To assist those most in need, a six-month grace period on failure-to-pay penalties will be made available to certain wage earners and self-employed individuals under the IRS Fresh Start Initiative. The request for an extension of time to pay will result in relief from the failure to pay penalty for tax year 2011 only if the tax, interest and any other penalties are fully paid by Oct. 15, 2012. The Tax Resolution Institute can help you turn this opportunity into a viable reality that protects your financial future.
Access IRS Fresh Start Initiative By Acting Now
Under this new relief, taxpayers can avoid new penalties through the IRS Fresh Start Initiative until Oct. 15, 2012, which is six months beyond this year’s filing deadline. However, the IRS is still legally required to charge interest on unpaid back taxes and does not have the authority to waive this charge, which is currently 3 percent on an annual basis. Even with the new penalty relief becoming available, the IRS strongly encourages taxpayers to file their returns on time by April 17 or file for an extension. Failure-to-file penalties applied to unpaid taxes remain in effect and are generally 5 percent per month, also with a 25 percent cap.
If your delinquent tax burden still feels overwhelming, contact the Tax Resolution Institute for a free consultation. Even if you do not qualify for these programs, we can offer viable tax relief solutions. With a tough economy, almost everyone has struggled, but this is not an excuse to stick your head in the sand like an ostrich and just pray the problem will go away. Even with the IRS Fresh Start Initiative and the new penalty relief programs, the IRS is still the largest collection agency in the world. They will not go away, and the Tax Resolution Institute will help you find the delinquent tax debt relief you need.