Don’t Panic, File a Tax Extension to Buy More Time
Taxes are probably so buried on your to-do list that when it comes time to actually file them (now), you think oh shit! and the regime of panic sets in. Instead of forcing yourself to drink while trying to meet the April 18 deadline, ask for an extension so you can file your tax return later. Here’s how.
If you run out of time or are still missing important forms, you should consider applying for an extension. The process is surprisingly painless and free, no questions asked. You can file it through the IRS website, submit a paper form, or ask the tax inspector to complete Form 4868. Be sure to do this by April 18th and you will have until October 16th to file your tax return. However, keep in mind that a six-month extension is not a reason to postpone another five and a half months.
And let’s be clear: Submitting an extension gives you additional time to file your tax return, but you are not exempt from paying your debt. If you don’t know how much you need to pay, you can get an estimate here or here (then pay here ). The important thing is that you – the pay deadline to avoid penalties and interest. As Melissa Labant, director of tax protection at the American Institute of Certified Public Accountants , told the New York Times, “ When in doubt, pay more to avoid underpayment penalties.”
If you can’t pay your debt, do your best, Labant suggests, and see if you qualify for the installment plan.