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Subscribe to RSSThe Internal Revenue Service has announced plans to help people who are struggling to pay their taxes because of a job loss or big drop in income.
The new offerings are an expansion of an initiative, called “Fresh Start,” that dates to 2008. This week the IRS said it is expanding the program so it can help more people get back on their feet financially.
“We have an obligation to work with taxpayers who are struggling to make ends meet," IRS Commissioner Doug Shulman said in a statement.
Under the expanded program, the IRS will grant a six-month grace period on failure-to-pay penalties for people who were unemployed for at least 30 days in 2011 or early 2012.
They also will grant the grace period to self-employed people who saw their income fall by 25 percent or more in 2011 because of the weak economy.
There are some restrictions. To quality, the taxpayer’s income must not exceed $100,000 for individual filers or $200,000 for those filing jointly. In addition, they must not owe more than $50,000 in taxes 2011.
There’s also one caveat: The IRS will continue to charge interest on unpaid back taxes, since it said it does not have the authority to waive that charge.
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The IRS also said it is expanding a program that lets people pay back taxes in installments rather than a lump sum. The program will now be more readily available to people who owe up to $50,000 in back taxes, and the term of repayment has been extended to 72 months from 60 months.
If you owe more than $50,000, you’ll still have to supply the IRS with some paperwork, and you may also have to pay down your balance somewhat to qualify for the program.
For more information, check out the IRS website.
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if you are not working what taxes do you pay?
@You have it all wrong
If you receive unemployment you have to pay tax on it. And it doesn't count as earned income since it's not wages. Can be very difficult for people out of work a long time.
It's mostly an issue for folk that don't have significant savings, you get laid off, get on unemployment and are unable to meet your tax obligations.
Speaking as a recently unemployed person, it was also very tempting to file as exempt for your unemployment benefits. Newly unemployed folk assume that they will just be umemployed for a short while the extra money every month can help you meet bills and such. If you get a job no big deal, the extra money from salary will cover your taxes you didn't pay before. But if you are unemployed for a long while it comes back to bite you.
Yep, happened to me. I didn't have the $3k+ for taxes from unemployment. I was one of the those who got the 99 weeks of unemployment, and now I have a tax lien for unpaid taxes. The IRS is totally unsympathetic. I was basically told I should have sold my kidney's to come up with the money. They are very dense when you try to tell them you do not have a job, so you can't shid out money you don't have to pay your taxes. I hate them with a passion.
"We have an obligation to work with taxpayers who are struggling to make ends meet,"
What a load of krap! The IRS like most government agencies consider the private sector as targets of opportunity. They are not going to do anything to help you that doesn't benefit them. Beware of government when they show up and say they want to help you!
Go see Romney for the money that is owed. Every rule is set up so the wealthy will become wealthier. The day of reckoning is coming, my greedy friends.
And another numnutted demorat heard from.
How about cutting ALL taxpayers a break? I wish WE THE PEOPLE could choose where our tax dollars are spent...........(not on Corporations)
Is this article a joke? If the IRS really wants to help, they should just say the first $50,000 that a person makes is "tax free"............since the poverty income levels in this country never rise with the real world inflation levels.
I really get tired of these phonied up government "help projects". The only people our government has ever helped.........is themselves to the tax payers hard earned income.
The IRS can't do what you say. They don't make tax laws. Congress makes the laws.
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It is ridiculous that a man that cannot make enough money to put food on his table because of this crap economy, but he has to pay taxes. It's even worse when he makes less than poverty level and is expected to pay taxes. And, even worse when the GSA just partied away more tax money than this guy will owe in taxes during his life!
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