Final Tax Deadline Approaching Quickly

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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