Those of us who are unemployed and who are unable to pay their 2011 taxes on time get a break.
The IRS will allow them six extra months to pay the taxes due without penalty. Those who qualify are wage earners who were jobless at least 30 consecutive days in 2011 or in 2012 up to the April 17 filing deadline.
This is also extended to those who are self-employed 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. You are considered affluent so you have no money issues according to the government.
For filers owing over $50,000 you are out of luck as well. You need to file Form 1127-A with IRS by April 17 to request the extra time for payment. Penalties are not assessed by interest will still be due on any unpaid balance.
Additionally more individuals will be able to pay their back taxes in installments without having to supply detailed financial information. The IRS has doubled the threshold to $50,000 to use these streamlined installment procedures and is allowing six years for repayment. But you will have to agree to let the IRS debit your bank account monthly.
These changes can be a real benefit for a number of tax payers.