Don't Let the April Deadline Get the Best of You

by Lee Reams in 1040 & Personal Finance

With April 15 right around the corner, last minute tax filers are scrambling to meet the deadline and avoid penalties. This article provides some helpful tips to get you through this stressful time. If you are up against the April deadline and still need some information to complete your tax return, you can obtain a six-month automatic extension of time to file your 1040.

The filing extension will give you extra time to get the paperwork together, but it does not extend the time to pay any tax due. You have to make an accurate estimate of any tax due and pay at least 90 percent when requesting an extension. Interest will be owed on any amounts not paid by the April deadline.

If your return is completed but you are unable to pay the tax due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due and will charge interest and penalties only on the unpaid balance.

If you cannot pay the full amount due with your return, you can ask to make monthly installment payments for the full or partial amount by requesting an installment agreement.

The foregoing is only an overview of the options available to you and discusses the problems that may arise if you don’t file and pay your tax by the April 15 due date.

If you are unable to file or pay on time, it is important to contact one of our professionals listed in our directory prior to April 15 so you can take the appropriate steps to mitigate penalties and interest.