If you aren’t ready to file your tax return, then file a tax extension with the IRS immediately.
Tax day is April 15th. This year April 15 falls on a Monday so with only a few minor exceptions, Tax day is right on the 15th.
If you can’t file your taxes, make sure you file an extension with the IRS by the end of the day on April 17th.
Also, make sure you pay what you owe!
For those who owe, the IRS imposes a steep penalty if they don’t file their return: 5 percent of the unpaid balance for each month it’s late, up to a maximum of 25 percent of the amount due.
So if you owe, say, $1,000 and do not file, that penalty alone could reach $250 after five months of not filing your return.
“Even if you can’t pay anything, it makes sense to file on time to avoid these costs,” said certified financial planner Misty Lynch, a financial consultant at John Hancock in Boston.
Just because you file a tax extension with the IRS, doesn’t mean you are clear with your state and/or municipality. Check with your state and local governments to see if any additional steps are needed to keep you out of trouble.
Additional Tax tips