Attention US taxpayers! If you haven’t filed your 2006 income tax return yet, you’re almost out of time.
The final deadline is approaching quickly. Assuming that you filed
an extension, you have until October 15th to file your tax return with
being considered late. If you didn’t file an extension, well that’s
another story…
A couple of thoughts about the upcoming deadline:
1. If you filed an extension because you owed money, you’re out of
luck. The extension only extends the time to FILE your tax return. It
does not extend the time to PAY your taxes. So, if you expect to owe a
balance due, expect to pay interest and penalties.
2. What should you do if you expect to owe a balance due, and you don’t think you’ll be able to pay?
a. First, go ahead and file your tax return. The IRS will be
more willing to work with you if you file a timely tax return.
b. Ask for a payment extension. The IRS used to allow a 60-day
payment extension (can’t find any info online about this, but I bet
they still do offer it). If you think you’ll have the money pretty
quickly, then call and see if they still offer this option. It doesn’t
waive any interest or penalties, but it keeps the IRS off your back for
a couple of months while you find the money to pay up.
c. Pay by credit card. I don’t really recommend this option,
but if you’ve got a low interest credit card, it may be less expensive
than paying interest or penalties to the IRS. There is a convenience
fee to pay your taxes by credit card.
d. Apply for an installment agreement. If you absolutely can’t
pay your taxes, you should request an installment plan with the IRS.
Again, you may not be able to get out of any interest or penalties, but
it will at least allow you to pay your debt in smaller, more manageable
payment amounts.
Lastly, be kind to your tax preparer! Please, please, please help
us keep our sanity by NOT waiting til the last minute to file your tax
return!
For more information on filing late or paying late, click here.
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