Finance & Enjoyment Blog

     Since the recession started in 2008, the IRS has implemented a “Fresh Start” program designed to allow those who owe taxes and penalties a bit of relief. They do this through an extension of the penalty period and also allows for installment payments for large balances.

     Please note that “Fresh Start” relief is only available to those who have been unemployed for thirty consecutive days during the year or self-employed individuals who have seen a 25% decrease of their business income. Also singles can not have income over $100,000 or $200,000 for married. Taxes due cannot exceed $50,000.

     The delay on the penalty payment will be a tremendous help. Historically the IRS has imposed a half of a percent penalty per month for all payments made after the tax deadline. With “Fresh Start” relief, this is extended until the normal extension date of October 15th.

     In addition to penalty relief, the installment payment threshold is raised from $25,000 to $50,000 and the payment period extended from five years to six. By utilizing these new programs, many people many people who are struggling to pay taxes may find some relief.

 


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