Procrastinators Last Minute Guide to Tax Filings
by Rich Chappo
April 15th. Is there a day that makes American groan more? Yep, it is the annual tax filing deadline. Oh, the fun. If you have been procrastinating on your return, here is what you need to know.
The good news is you have a few extra days to file in 2007. The tax code is based on business days. Any deadline that falls on a weekend is automatically bumped to the following Monday. That is the case this year, so you have to the 17th to file.
Many people prefer not to rush when preparing taxes. After all, an error can cost you a lot of money. You can get an automatic extension to file your taxes by filing form 4868.
The IRS automatically accepts the tax filing extension. It is also good for a six month period. This means you have until October 16th to file your personal returns. You can request a second extension then, but they are not often granted.
There is something important to understand about your automatic extension. It is only an extension to file. You still are required to pay all the money you owe. Failure to do so will lead to the assessment of penalties and interest when you finally do file.
One of the truly wonderful things about tax time is a catch-22 that can occur. You go ahead and get your return prepared and ready to be filed. Unfortunately, you realize you owe more than you can pay. Now what?
The steps taken by most people is, well, to take no steps at all. They simply don't file in hopes that they can do so later when they have the cash to pay. This is not the best of ideas.
If you are ready to file, but short on cash, go ahead and file. Send in what you can even if it is less than you owe. The IRS will send you a notice of shortfall. You can then request a payment plan.
Filing even if you can't pay is smart for a few reasons. First, you don't send up red flags at the IRS. Second, you will ultimately pay less then not filing. You will still pay penalties and interest on what you owe, but the amount will be less because you made at least a partial payment.
If you are ready to pay your tax liability, there are a couple of ways. You can pay by check as has always been the case. You can also pay by credit card by going to officialpayment[dot]com. You will pay a service fee for using the online system.
Tax refunds are beautiful things. Of course, you never know if you are due one until you figure out your return. If you are, you can apply it to next year's taxes or get it back. To check on the status of your refund check, visit the IRS site to get a real time report.
Much like taking the trash out, taxes are just something you have to deal with. The deadline is almost upon us. Whatever you do, make sure you do something.
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