The IRS had one goal when it announced the Fresh Start Program in February 2011. The goal was to make the process of paying for penalties easier for individuals. Over time, the program has been expended, but the goals are still the same.
What Is The Fresh Start Program
The program combines payment installments, lien releases, penalty assistance, and a program called Offer in Compromise so that taxpayers can settle their tax debts at a cost that is lower than they owe.
How The Program Waives Tax Penalties
In the past, when individuals missed the deadline in April, they received immediate penalties and interest charges. However, unemployed taxpayers who qualify for the Fresh Start Program can have their penalties waived for several months.
The extension option is available to people who were jobless for 30 consecutive days in 2012. Self-employed taxpayers must prove that their businesses decreased by 25 percent in 2012 so that they can qualify.
People who earned over $100,000 annually and couples who earned over $200,00 annually do not qualify for an extension. In addition, individuals who had a tax balance that was higher than $50,000 in 2012 also do not qualify.
The program’s purpose is to help taxpayers who are struggling because of ongoing financial problems. It give unemployed taxpayers an exemption from a penalty. Under the first slice of the program, taxpayers got a reprieve from tax penalties that... ...read full post