Penalty Relief and Expanded Installment Agreements | Tax Tip of the Week | No. 160

New IRS Collection RulesThe IRS announced an expansion of the “Fresh Start” initiative to help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making installment agreements available to more people.Wage earners (employees) who have been unemployed for 30 days or longer will be able to avoid failure-to-pay penalties during a six-month grace period (October 15, 2012 for 2011 taxes). In addition, the IRS is doubling the dollar threshold from $25,000 to $50,000 for taxpayers to be eligible for automatic installment agreements to help more people qualify for the program as well as extended the maximum payment period from 60 months to 72 months.This initiative also changes the rules on getting an Offer in Compromise accepted.For more information, review IR-2012-31. Then give us a call if you need help in settling your debt with the IRS.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt - the guy behind TTWTax Tip of the Week Video Series:http://youtu.be/BlhqUiVEsJo...until next week.