Tax Penalty Relief For the Unemployed

The IRS has announced an expansion to its "Fresh Start" initiative that can provide tax penalty relieft to unemployed and struggling self-employed people.

Those that qualify can receive a 6 month grace period on payment of taxes. A timely filed extension will also extend the time to pay. Note that all taxes and interest must be paid by October 15, 2012 to avoid the late payment penalty.

Two categories of taxpayers will qualify for this relief.

• Wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to the April 17 deadline for filing a federal tax return this year.
  

• Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.

For more information, leave your question in the comment section of this post.