Taxpayers who are struggling to pay their taxes may get some relief from the IRS’s expansion of its “Fresh Start” initiative, a program started back in 2008. The new Fresh Start provisions provide penalty relief to the unemployed and make installment agreements on taxes owed available to more people.
Normally, a failure-to-pay penalty of one-half of one percent per month, up to a 25% maximum, is charged for overdue taxes. The “Fresh Start Penalty Relief” initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes – that is, until October 15, 2012, before the penalty begins to apply. Interest of 3% will still be assessed starting from April 17, 2012.
The penalty relief is available to workers who have been unemployed at least 30 consecutive days during 2011 or 2012 and to self-employed individuals who experienced a 25% or larger reduction in business income in 2011 due to the economy. Income limits apply: the relief is not available to singles with adjusted gross income over $100,000 or to couples with income over $200,000. Also, taxes due cannot exceed $50,000.
The Fresh Start program also changes the eligibility threshold for streamlined installment agreements from $25,000 to $50,000 and increases the maximum term from five to six years.
For details or assistance, contact our office.
Rager, Lehman & Houck, P.C. is pleased to announce the following promotions:
Derick J. Groft, CPA – promoted to Tax Manager
Derick graduated summa cum laude from Shippensburg University of Pennsylvania in 2004 with a BSBA in Accounting. He is a member of American Institute of Certified Public Accountants and the Pennsylvania Institute of Certified Public Accountants. Derick has seven years of Public Accounting experience including tax preparation and planning for all types of entities.
Megan E. Abbott – promoted to Senior Accountant
Megan graduated from Shippensburg University of Pennsylvania in 2008 with a BSBA in Accounting. She is an Associate Member of the Pennsylvania Institute of Certified Public Accountants. Megan has three years of Public Accounting experience including tax preparation, audits, compilations and reviews of commercial, not-for-profit and governmental entities. Megan specializes in audits of Employee Benefit Programs and Single Audits.
Rager, Lehman & Houck, P.C. is a regional firm, which provides a wide variety of services for our business and individual clients. With our extreme commitment to superior customer service, Rager, Lehman & Houck, P.C. helps clients to recognize and achieve their financial goals by providing exceptional resources through an outstanding team of professionals. Rager, Lehman & Houck, P.C., Certified Public Accountants and Business Consultants have three offices located in Westminster and Frederick, MD; and Hanover, PA. Visit the website at www.rlhcpa.com