Tips for Last Minute Payments and Filing

Article Highlights:

• Filing an extension
• Extension is for filing, not paying any tax due
• Installment Agreements

If you are up against the April 18, 2017 deadline and still need some information to complete your tax return, you can obtain a six-month automatic time extension to file your 1040.

The filing extension will give you extra time to get the paperwork together, but it does not extend the time to pay any tax due. You have to make an accurate estimate of any tax you’ll owe and pay at least 90% of it when requesting an extension. Interest will be owed on any amounts not paid by the April deadline.

If your return is completed but you are unable to pay the tax due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due and will charge interest and penalties only on the unpaid balance.

If you cannot pay the full amount due with your return, you can ask to make monthly installment payments for the full or partial amount by requesting an installment agreement.

The foregoing is only an overview of the options available to you and discusses the problems that may arise if you don’t file and pay your tax by the April 18, 2017 due date.

If you are unable to file or pay on time, it is important to contact this office prior to April 18, 2017 so you can take the appropriate steps to mitigate penalties and interest.