Not everyone is able to file their taxes on time and might need the help of an extension, filing their taxes online, paying their taxes with a credit card or sometimes not even filing the taxes altogether. The deadline for filing your annual tax return is April 15. That number does not change unless the 15 falls on a Sunday. If April 15 falls on a Sunday than the filing date falls on the following Monday. There are millions of people across the country each year that wait until the last possible minute to file their taxes so if this sounds like you, you are not alone. There are ways to obtain an extension from the IRS, which have become increasingly easier over the years. If you need to obtain an extension from the IRS, all you need to do is fill out Form 4868 and wait for a reply from the government. If you are approved for an extension you will receive a 6 month extension to file your taxes. So, if you didn’t file by the 15 of April, you now have until the 15 of October to file your annual income tax return with the IRS. There is one catch with obtaining an extension and it is extremely important. Receiving an extension to file taxes with the IRS does not also mean that you do not have to pay your taxes for another six months. Even if an extension is granted you must find out how much you owe the government and send the payment to the IRS by the 15 of April. If you do not do this there will be interest placed on your remaining balance while also paying late penalties.
Filing Taxes Electronically
With the advent of technology over the years it has become easier and easier to file annual income tax returns electronically. Once your taxes are complete and you find out that you are going to receive a refund from the IRS, it might make more sense to file your taxes electronically. Why? Filing taxes with the IRS electronically speeds up the process of the government processing your return. The refund will arrive much sooner, maybe even within two weeks of filing the return. If you aren’t expecting a refund from the IRS then there is no reason for you to file your return electronically. The only benefit here is that the IRS is able to process your return quicker.
Paying Taxes by Credit Card
Not everyone in the country has the money available to pay their taxes right away so they opt to pay the taxes with one of their credit cards. The only way a person should pay their taxes with their credit card is if the interest rate on the card is 10 percent or less. If the interest rate on the credit card is more than 10 percent you will wind up paying more in interest and fees on your credit card than you will by paying the IRS in installments over a period of time. There is a 2.49 percent convenience fee to pay taxes by credit card but sometimes the credit card company will waive that fee and they will pay it for the card holder.
- Do you have a question regarding taxation law? If so, contact an experienced Tax Attorney in your area today!
