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!