IRS wants you to make payment by this date to avoid penalties: Who qualifies for tax relief and other benefits?

Those who fail to pay by the deadlines for this financial year will face interest-based penalties.

Published on: Jun 18, 2025, 13:51:32 IST

Edited by Sumanti Sen

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The Internal Revenue Service (IRS) notified all taxpayers to file their second-quarter taxes by June 16 to avoid facing the risk of penalties. “Taxpayers that receive income not subject to withholding, such as income from self-employment, gig work, interest, dividends, capital gains, rent or 1099 earnings, may need to make estimated tax payments throughout the year. This includes freelancers, retirees, investors, businesses, and corporations,” said a news release on the official website.

IRS wants you to make payment today to avoid penalties: Who qualifies for tax relief and other benefits? (AP Photo/Patrick Semansky, File) (AP)

Those who fail to pay by the deadlines for this financial year (April 15, June 16, September 15, and January 15 of next year) will face interest-based penalties which compound daily. To avoid facing underpayment penalties, the IRS provided some safety thresholds:

• Pay 90% of your 2025 total tax liability

• Pay 100% of your 2024 total tax (if income was under $150,000)

• Pay 110% of your 2024 total tax (if income was above $150,000)

For those who failed to meet the deadline, the recently introduced IRS Fresh Start Program can provide alternate opportunities.

What is the IRS Fresh Start Program?

For those who are already flailing on their tax payments, the IRS Fresh Start Program provides a safe mechanism to obtain potential relief through a settlement but only if the beneficiary is able to satisfy the extensive documentation and information requirements.

An applicant is required to provide income verification (pay stubs, profit & loss statements, Social Security, or pension income), asset summary (all property, vehicles, bank accounts, and retirement funds), and expense breakdown (detailed monthly expenses including rent, food, insurance, and utilities). The IRS uses this information to calculate your Reasonable Collection Potential, in other words, what it deems you capable of paying.

Lack of transparency in the application process can lead to disqualification of your appeal. Hence, it’s important for those applying to take a thorough look at all that’s required to be eligible for the program.

– By Stuti Gupta

ABOUT THE AUTHOR
Sumanti Sen
Sumanti Sen covers everything that’s happening in the US, from politics to entertainment, but her expertise lies in covering crime news. She has comprehensively chronicled the Idaho student murders, the Laken Riley and Iryna Zarutska cases, and the killing of Charlie Kirk, among other incidents. Over the years, she has interviewed several victims/families of victims of crimes seeking justice. She digs up stories that might otherwise remain unheard, and does her bit to ensure that victims and survivors’ voices are heard. Sumanti’s many years of experience also include interviews with Hamas attack survivors and mental health experts, among others. Her coverage of the October 7 Hamas attack on Israel and interviews with survivors of the tragedy, coupled with her other works including the Titan submersible coverage, earned her the Digi Journo of the Quarter award during her first year at Hindustan Times. Sumanti actively tracks missing person cases in the United States, and peruses Reddit and other social media platforms to bring to light cases that frequently elude public attention. She has extensively covered the disappearances of Nancy Guthrie, Thomas Medlin, Beau Mann, and Sudiksha Konanki, among others. When not at work, you will either find her with her novels, or with her beloved rescue pooches.Read More

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