Procrastinators Last Minute Guide to Tax Filings

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.

Preparing tax returns is a complex matter. If you don’t believe me, just try reading one set of instructions kicked out by the IRS. Instead of doing a sloppy preparation, you might want to get more time. 4868 is the form you need to file.

The good news for extension filers is two fold. First, the extension is granted automatically. Second, the period has been extended from three months to six months. This longer period, however, also means the IRS is unlike to grant a second extension.

Taxpayers often misunderstand tax filing extensions. The extension only applies to the actual filing of the tax return. Unfortunately, it does not require to the payment of money. The IRS wants its cash now, so you need to pay something if you think you will owe.

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.

Not filing a tax return sends up red flags at the IRS. To avoid this, you should file regardless of whether you can cover the amount due. Send in your return as well as the amount you can pay. The IRS will then set you up on a payment plan.

The advantage of this second approach is you save money. Since you have sent in at least some money, the amount you will receive penalties and interest on is less. This, of course, means you pay less ultimately.

Now, what if you are ready to file and can pay the tax debt? You can get money to the IRS in a couple of ways. The first is to send in a check as most do. The second is to pay by credit card. Just go to the IRS site to find authorized vendors to handle the payments.

Many people are happy to learn they are actually due a refund on their taxes. If you fall into this group, you might want to know when the heavenly money will be coming. Visit the site for the IRS and follow the link on the home page.

Filing taxes is one of those things we all tend to put off until the last moment. Well, the last moment is here!

Article Source: http://allentrepreneurinfo.com

Get more information on federal income tax at BusinessTaxRecovery.com.
Click here for other unique tax return articles.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated