Saturday, April 16, 2011

Don't Panic

If you can't meet the April 18 filing deadline, here's what you need to know:
  • An extension allows you extra time to file but is not an extension of time to pay a balance due. If you have not paid at least 90 percent of the total tax due by April 18 you may also be subject to an Estimated Tax Penalty.
  • File a Form 4868 by April 18 to extend the filing deadline to Oct. 18. You should also estimate your tax liability and pay as much of it as you can before April 18. You can file an extension online and the IRS will acknowledge receipt of the extension request.
  • If the return is done but you do not have funds to pay a balance due, do not request an extension. File your return on time and pay as much as you can. You will be billed for the remainder of the amount you owe. To request a payment plan, include a Form 9465 with your return.
  • Individuals who owe $25,000 or less in combined tax, penalties, and interest are eligible for an Installment Agreement and can use the Online Payment Agreement application available on

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