The penalty relief will be available to two categories of taxpayers:
· 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.
This penalty relief is subject to income limits. A taxpayer’s income must not exceed $200,000 if he or she files as married filing jointly or not exceed $100,000 if he or she files as single or head of household. This penalty relief is also restricted to taxpayers whose calendar year 2011 balance due does not exceed $50,000.
The IRS strongly still encourages taxpayers to file their returns on time by April 17 or file for an extension to avoid the failure-to-file penalty.
If you have any questions or need help preparing your taxes, please do not hesitate to contact me at (310)