13
April
2015

tax-relief-measures-taken-by-irs

Better late than never. The IRS is ready with it’s bag loaded with last-minute relief measures for business owners, employees and everyone else. Have a look at this article to know about it.

Obamacare penalty relief

Employers

  • No penalties if there are only 50 employees
  • No penalties for S corporations with above 2% shareholders
  • No penalties for a S corporation with only 1 participating employee

Insurance holders

  • No penalties for late payment of premium tax credit

Other relief measures

Business owners

  • Simplified procedure to apply repair regulations

Everybody

  • Launched IRS2Go 5.0 app in smartphone
  • Don’t have a tax liability for 2013
  • Your tax for FY 2014 minus your withholding is not more than $1000
  • Your withholding plus estimated tax payments was equal to 2013 tax
  • You made estimated tax payments on time
  • Your current year taxable amount is not above $1000
  • The unpaid tax balance on your 2014 return is less than 10% of your total 2014 tax

Waiver of penalty

Underpaid your taxes? Don’t worry! The IRS will waive off your penalty under the following situations:

  • You’ve a valid reason for not paying your tax
  • You didn’t not intentionally forget tax payments
  • You’ve retired or have become disabled in 2013 or 2014
  • You couldn’t pay tax due to casualty or any disaster

Incase you’re in a similar situation, then it’s best to request for a waiver of the penalty. File the IRS form 2210 in order to request for a waiver of penalty. Apart from that, you’ll also have to give a written statement and narrate why you couldn’t make the estimate tax payment. You also need to specify the time period for which you’re asking for a waiver. Make sure you provide documentation of:

  1. Your actual age
  2. The date on which you retired
  3. Disability (if any)
  4. Evidence of a casualty or disaster
  5. Police report papers
  6. Insurance claim or report

Other ways to get tax relief from the IRS

Here are some other tax-relief options which are available for the consumers. Take advantage of them to save some extra dollars. But, even before you look at the subsequent section, have a look at the various aspects of filing taxes.

1.Automatic Extension

Don’t owe tax to the IRS? Don’t have to file your income tax returns too? Well, in that case you can file your tax returns after 6 months. Yes, April 15 is not your deadline especially when you’re about to get a refund.

Get a form 4868, fill it out properly and then submit to get an automatic extension. But make sure you file your income tax returns in the next 6 months. Otherwise, you may have to pay a penalty of 5% every month.

2. Deductions for student loans

You can deduct as much as $2500 for interest rates on student loans. You can claim the deductions even if you don’t itemize taxes. For single filers, deductions phase out at $65,000 and $130,000 for joint filers.

Conclusion

Try your best to avoid getting slapped by the IRS penalties for filing your tax returns late, making mistakes in your tax calculations, not having a proper itemized slip in case of charitable donations, etc. Consult a tax professional if required in order to make costly mistakes. Other than that, avoid the popular tax scams that are happening nowadays. That is more dangerous than getting penalized by the IRS.

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