Even if you’ve started early on your tax return, had someone else do it or used online forms, chances are, you can run late on filing your income tax returns. But does that mean you automatically will receive tax penalties? As it turns out, you can end up with no penalties at all.
File an extension immediately. If you think you can’t make it by the 15th, then don’t waste time. File an extension, so you will have until October 15, 2010, to file your return. To apply for the extension, fill up Form 48-68 online, or send a copy by mail. Contact your local IRS offices, or go online to get the form.
Make good use of the extension. Now that you have six more months, go through your tax return again to maximize all tax credits and deductions for 2009, like the energy efficiency credit (for energy efficiency upgrades to your home), scholarship credits and refunds for college students, and the first-time homebuyer tax credit.
Remember, though, that you must still pay your taxes on time. That’s different from a late filing of your tax return.
You can pay your taxes in monthly installments. If you’re not sure about exactly how much y0ou have to pay, then pay what you are sure of on time. Fill up Form 94-65 with the return, and then list how much you want to pay monthly. You will get a reply from the IRS if they will accept the offer. You will have to pay $105 for this option or $52 if you will pay through online services.
Finally, if you can pay the entire remaining amount in 120 days, the IRS can waive that the fee, if they accept it.
This move is important, since late filing penalties start at 5%. That adds up very quickly, and can cost more than the late payment penalty itself.
Sign up on the box at the right for more information on tax penalties and income tax returns.
Add A Comment