Don’t forget to file your tax return and/or your extension by the end of today!  I wanted to quickly address a question I hear very frequently, especially on Tax Day…

"What if I can’t pay the balance due on my tax return?"

The first thing you should understand is that filing an extension does NOT extend the time to pay your taxes.  This is a common misunderstanding.  Filing an extension only extends the time to file your tax return, it does not extend the time to pay.

The best thing to do if you owe taxes is to send in a payment with your extension request.  If you can’t send in the total balance due, send in as much as you can.

Filing an extension can still be helpful because it gives you more time
to review your tax return and make sure you haven’t missed any
deductions.  It also reduces the penalties you will incur (there are
late filing and late paying penalties; filing an extension will
eliminate the late filing penalty, but not the late paying penalty).

If you owe a significant amount, you should consider applying for a payment plan with the IRS. 
While you will still pay interest and penalties, this will keep the IRS
from garnishing your wages or filing liens against your property.

Another alternative is to use a credit card to pay your taxes, however
the IRS does charge a fee for this service.  This might make sense if
you have a low interest rate on your credit card compared to the
interest and penalties that you could pay to the IRS.

For more information directly from the horse’s mouth, please visit Filing Late and/or Paying Late at the IRS website. 

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