Filing a tax extension? You still have to pay on time.

Tax Day is here, which means people who haven't done their taxes yet will be filing for a six-month extension. But the extension gives you more time to file, not more time to pay – with a few notable exceptions.  

|
David Ake/AP/File
The Internal Revenue Service Headquarters (IRS) building in Washington. Wednesday, April 15, 2015, is the deadline for filing income tax returns, a day long associated with the dread of rushing to fill out complicated forms and, perhaps, making a payment to Uncle Sam.

The April 15 tax deadline is here, and people who haven’t done their taxes yet will probably be filing a six-month extension unless they plan to spend the weekend knee-deep in paperwork.

But before you assume you can forget about your taxes for the next six months, consider a few important points that can keep you from being penalized by the Internal Revenue Service.

If you are not going to have your tax return done on time, you can ask for an automatic six-month extension to get your information together. That will give you until October 15. To ask for an extension, you can fill out Form 4868, which is an Application for an Automatic Extension of Time to File a U.S. Individual Income Tax Return.

However, that gives you more time to file, not more time to pay. Your taxes are due on April 15, whether or not you submit your tax return. Before you file your extension, figure out whether you’re going to owe the IRS money and consider sending the agency a check with the application for an extension.

Now for a little secret: You can also get an extension for your payment, in certain circumstances, by filing Form 1127, which is an Application for Extension of Time for Payment of Tax Due To Undue Hardship. Less than 10% of these requests are granted each year. However, if you are experiencing extreme financial hardship, think about filing this request.

Here’s another little-known fact: If you owe money to the IRS, and you don’t pay it by April 15, you can get a one-time “oops” waiver of your penalties. If you made a one-time mistake, you can write to the IRS and request abatement of the penalty. If this is your first time making that mistake, the IRS may decide not to penalize you for failing to pay your taxes on time. However, the agency won’t give you the waiver unless you ask for it.

So remember, just because you filed an extension for your tax return doesn’t mean you’re in the clear. Be very careful and pay your taxes by April 15. If you don’t, ask the IRS to waive the penalties. That way you’ll stay on the good side of the taxman.

Learn more about Craig on NerdWallet’s Ask an Advisor.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to Filing a tax extension? You still have to pay on time.
Read this article in
https://www.csmonitor.com/Business/Saving-Money/2015/0415/Filing-a-tax-extension-You-still-have-to-pay-on-time
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe