Can't File Your Tax Return or Make Your Tax Payments on Time?

If you can't meet the April 15 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.
• File a Form 4868 by April 15 to extend the filing deadline to Oct. 15. You should also estimate your tax liability and pay as much of it as you can before April 15. If done electronically, 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. By paying as much as possible now, the amount of penalties and interest owed will be less. You will be billed for the remainder of the amount you owe. 
• To request a payment plan, include a Form 9465 with your return. This arrangement allows you to make monthly payments after a one-time fee of $105 (reduced to $52 if you make payments through Direct Debit from your bank account). If you already have an installment agreement from a previous tax debt and your financial situation has changed, the IRS may be able to modify or restructure your installment agreement to include additional amounts owed into one agreement. Additionally, a Collection Information Statement may have to be completed to further illustrate your financial situation. If an installment agreement is modified, reinstated or restructured, a $45 user fee may be charged.

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 IRS.gov.