Last Minute Tax Filing Tips

As we move into April, tax deadlines are on the horizon. Since getting taxes prepared is pretty low on most people’s list of things to do, you might need some last minute tips.

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.

Last minute filers tend to fall into two categories. They either knuckle down and get it over with or throw up their hands and file an extension for more time. Form 4868 is the filing you need to make if you want to extend.

To the surprise of many, the IRS has a pretty lax attitude towards April 15th. It gives extensions without a problem. In fact, just filing form 4868 will get you an automatic extension until October to get your return in.

While the IRS is pretty liberal when it comes to filing returns, the agency has a different attitude towards payments. Yes, you can have more time to file the return, but you better pay whatever you owe now or you will pay penalties and interest. Send in money with the extension.

The tax filing deadline can come at a bad time for many people. You might be ready to file, but do not have the money to pay the amount due. What should you do?

If this occurs, your first option is the Ostrich strategy. You can just stick your head in the sand and not file until you have enough money to pay the bill. The problem, of course, is the IRS is going to notice. You will also pay more in penalties and interest.

If you are ready to file, but short on cash, go ahead and file. Send in what you can even if it is less than you owe. The IRS will send you a notice of shortfall. You can then request a payment plan.

Filing even if you can’t pay is smart for a few reasons. First, you don’t send up red flags at the IRS. Second, you will ultimately pay less then not filing. You will still pay penalties and interest on what you owe, but the amount will be less because you made at least a partial payment.

If you are ready to pay your tax liability, there are a couple of ways. You can pay by check as has always been the case. You can also pay by credit card by going to officialpayment[dot]com. You will pay a service fee for using the online system.

Tax refunds are beautiful things. Of course, you never know if you are due one until you figure out your return. If you are, you can apply it to next year’s taxes or get it back. To check on the status of your refund check, visit the IRS site to get a real time report.

I proudly admit to being a procrastinator. If you are like me, D-Day is here. Perhaps we should call it T-Day.

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