Procrastinator’s Last Minute Guide to Tax Filings
By Rich Chappo
As we move into April, tax deadlines are on the horizon. Since getting taxes prepared is pretty low on most people’s list of things to do, you might need some last minute tips.
This year, you need not fear the fifteenth. Instead, the seventeenth is the day of loathing. Why? Well, the traditional filing deadline falls on a Saturday, which means the filing date is bumped to the following Monday. Two whole extra days!
Last minute filers tend to fall into two categories. They either knuckle down and get it over with or throw up their hands and file an extension for more time. Form 4868 is the filing you need to make if you want to extend.
The good news for extension filers is two fold. First, the extension is granted automatically. Second, the period has been extended from three months to six months. This longer period, however, also means the IRS is unlike to grant a second extension.
While the IRS is pretty liberal when it comes to filing returns, the agency has a different attitude towards payments. Yes, you can have more time to file the return, but you better pay whatever you owe now or you will pay penalties and interest. Send in money with the extension.
The tax filing deadline can come at a bad time for many people. You might be ready to file, but do not have the money to pay the amount due. What should you do?
If this occurs, your first option is the Ostrich strategy. You can just stick your head in the sand and not file until you have enough money to pay the bill. The problem, of course, is the IRS is going to notice. You will also pay more in penalties and interest.
A better option is to go ahead and file the tax return. You should also send in what you can for payment. The IRS will then send you a notice that you have underpaid. You can then request a payment plan by going to the IRS website.
The advantage of this second approach is you save money. Since you have sent in at least some money, the amount you will receive penalties and interest on is less. This, of course, means you pay less ultimately.
Now, what if you are ready to file and can pay the tax debt? You can get money to the IRS in a couple of ways. The first is to send in a check as most do. The second is to pay by credit card. Just go to the IRS site to find authorized vendors to handle the payments.
Finding out you are due a refund is a blissful moment. Then greed sets in. When will you get it? You can go to the IRS site and find out. Just click the “where is my refund” link and follow the directions.
Much like taking the trash out, taxes are just something you have to deal with. The deadline is almost upon us. Whatever you do, make sure you do something.
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