Tuesday, March 20, 2012

Late Breaking IRS news....

Unemployed people who can’t pay their 2011 taxes on time get a break.

The IRS is giving them six extra months to pay the taxes due without penalty.

This applies to wage earners who were jobless at least 30 consecutive days in 2011 or in 2012 up to the April 17 filing deadline. This also applies to self-employed taxpayers whose income in 2011 was at least 25% lower than in 2010.

Couples with incomes over $200,000 and others with incomes exceeding $100,000 don’t qualify. Filers owing over $50,000 are out of luck as well.

File Form 1127-A with IRS by April 17 to request the extra time to pay. And keep in mind that interest will still be due on any unpaid balance.

And more individuals will be able to pay their back taxes in installments without having to supply detailed financial information. IRS is doubling the threshold to $50,000 to use these streamlined installment procedures and is allowing six years for repayment. You’ll have to agree to let the IRS debit your bank account monthly.

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