People have a million reasons to procrastinate and, in some cases, run up against the tax filing deadline, which is April 18 this year. Why run away when you could claim extra time? You can get an automatic six-month extension of time to file your tax return by filing Form 4868 electronically. But remember, if you don’t pay what you owe for taxes by April 18, you’ll owe penalties and interest.
Make sure to file your tax return by April 18 or request an extension, even if you cannot pay all of what you owe on time, the IRS penalty for late filing is 5% per month up to a total of 25% of the unpaid tax. However, there is a minimum penalty that ends up being the smaller of $205 or 100% of the unpaid tax if the return is more than 60 days late. Important point: If there is a refund or no balance due, these penalties will not apply.
The penalty for late payment is less than for late filing — 0.5% per month, up to 25% of the unpaid tax. If an extension is filed and 90% of the tax liability is paid with the extension, this penalty won’t apply during the extension period if the balance is paid with the return. Interest applies to any unpaid tax.
When it comes to paying your taxes, make sure to pay as much as you can as early as you can. Tax Extension Form 4868 is quite simple to complete. E-file it at http://ExtensionTax.com for just $9.99…. it’s a breeze! no hassles!!