Industry News

How to postpone tax time

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Good news if you can't pay all or part of your 2011 taxes on time because you've had a poor year: The Internal Revenue Service has announced a major expansion of its "Fresh Start" initiative, which is designed to give relief to taxpayers who can't pay their taxes due to the bad economy. The IRS says that qualifying taxpayers can now file an extension of time to pay their 2011 taxes and wait until Oct. 15, 2012, to file their returns and pay the balance due, without having to pay any penalties. Until now, taxpayers who opted for an automatic extension to file their tax returns until Oct. 15 had to pay all their taxes due by April 15 (this year it's April 17) or be subject to penalties on the unpaid balance. Now, you can get an extra six months to pay without having any penalties imposed. The savings can be substantial because the failure-to-pay penalty is generally half of 1 percent per month on the balance due, with an upper limit of 25 percent. However, the IR...