Economy

What you need to know about filing for a tax extension

What you need to know about filing for a tax extension

While death only visits once, taxes are an annual certainty. The form must be mailed with a postmark on or before April 17.

Failure to file will hurt: The IRS will assess a penalty of 5 percent of the balance due for each month your return is late, up to a maximum of 25 percent.

The 4-1-1 on extensions. "It's just you're hard-earned money that you have been lending to the CRA for nothing, so it's important that you spend the money wisely", Waters says.

Waiting until the last minute to pay your taxes can cost you if you are expecting a refund since the government hangs on to your money and receives more interest on it. Monday, April 16, is a Emancipation Day-a federal holiday-meaning Americans got a couple extra days to finish up their tax returns. If a taxpayer suspects a tax preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit.

It's Tax Day! If you haven't submitted your income tax return yet then it's time to think about filing for an extension. Other post office locations are open only for dropping off tax returns, packages, and any other mail.

"There is a great potential for many negative consequences", Martin warned.

"You can call whoever you do your taxes with, or you can get it over the Internet, and you can get an extension and send that in", Walker said.

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If you are self-employed, you may want to fund a SEP-IRA, solo 401 (k) or Simple-IRA plan.

"If you owe taxes, the IRS may charge penalties and interest", Martin stressed to LifeZette.

By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.

Walk-ins are still welcome, even on deadline day, Butler said.

If you're having trouble with filing, Tepper recommends using a software or talking with an accountant. You choose the date and amount of the payment, and as long as it is on or before April 18, it will be on time.

The IRS will never initiate contact with taxpayers via email about a bill or tax refund. "You win some, you lose some, but you can always get dim sum". He lives and works in Tupelo, Mississippi.