Tax Time: To Extend or Not to Extend?

By: Steve Brown, Mr. Tax of America

The Federal tax deadline has been extended until Monday, April 18th for this year. ( That is THIS year only! – Please remember it will likely be back to the 15th next year. )  If you need to file an extension, you can use form 4868 to get an extension until Oct 15, 2011.  This must be filed by (or before ) April 18th to avoid late filing penalties.

As odd as it sounds, you are required to send in your payment ( if you owe ) at the time you send in your extension. Yes, even if you have not filed your taxes and do NOT have the exact amount you owe, the IRS requires you to make an estimated payment to avoid a late payment penalty – plus interest! 

WARNING: If you are likely to owe a significantly larger amount, be careful of sending in an estimated payment that is obviously too small. It may cause the IRS to charge you penalties and interest that can add up fast.  Some tax offices, (mine included ) will provide you with an extension form for no charge. You will need to fill it out ( don’t forget to sign it! ) and make sure that it is mailed by the April 18th deadline with your payment.

NOTE: Don’t forget the postage. The IRS will NOT except this as an excuse for receiving the extension late!

Steve

Advertisements

About Save a Dime on 9

Save a Dime with 9 is part of WTVM's continuing effort to reach out to the community. Our ConsumerWatch team is constantly digging for deals and information that can help you and your family stretch your dollar. There are lots of other good savings blogs and websites out there, but Save a Dime saves you time and money because we're a one stop shop. Where else can you get free tax advice, tips on couponing and even the scoop on the latest tech gadgets all in one place? The answer...you're here! So let's start our savings journey together. If you have a blog idea for us, send an email to consumerwatch@wtvm.com. Please include a phone number so that we can reach you, if necessary.
This entry was posted in Money Matters, Save a Dime on 9. Bookmark the permalink.

One Response to Tax Time: To Extend or Not to Extend?

  1. Pingback: Tax Day Freebies |

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s