If Time Isn’t On Your Side
April 10th, 2008 | by rachel |
By my calendar, there are only 5 days left until the tax deadline. If you are completing it yourself, you might still be able to make it. If you are turning your information over to professionals, it’s probably too late. Not to worry. Your situation isn’t beyond repair! You can fulfill your 2007 tax obligations to the IRS just like everyone else. You just might need a little more time to do it…
Tax return filing extensions are available to just about anyone required to file a tax return. In most cases, the extension is automatic (meaning you don’t have to be approved). You just have to ask for it! Here are a few things to remember when requesting an extension:
- Instead of filing your normal tax form, you will file IRS Form 4868
- You can file the extension request via e-file or using a paper form.
- To complete the extension request, you will need to have some approximation of what you owe.
- Your extension request and any payment you owe has to be completely filled out, mailed and/or filed by the regular filing deadline, midnight, April 15, 2008.
- Requesting an extension from the IRS does only applies to your federal taxes. If you need extra time to file your state tax returns, you will have to file a separate request. For more information, contact the Department of Revenue in your state.
- A filing extension only extends the deadline for filing your return, NOT for paying what you owe!
- If you cannot pay all you owe, pay as much as you can. All interest and penalties will be calculated on the balance of what is owed, not the total tax due.
- The penalty for late filing is 5% of the balance owed per month (maximum of 25%).
- The penalty for late payment is .5% per mont + monthly interest.
- You can use your credit card to pay your tax bill. To pay with a credit card, visit Pay1040 or Official Payments. The government also accepts checks and money orders.
If, for whatever reason, you need a little more time to get your taxes ready, filing an extension is a simple, relatively quick process. Just make sure to ask for it before time runs out!
NOTE: The 2007 Tax Rebate (economic stimulus payments) are based on your 2007 tax return. If you file an extension for your tax return, your rebate payment will not be processed until after your return is received and processed by the IRS.