TAX NEWS - 2010

Tax Deadline - Filing an Extension

April 15th is a feared day for most taxpayers across the country. Paying the taxes isn't entirely the problem. It really has to do with the preparation of the tax returns. If you are feeling under the gun this year, you don't have to panic. You can always apply for an extension to file with the IRS.

The IRS is feared. The reputation of the agency is such that most people are afraid to even pick up the phone and call with a question. If this describes your feeling, you don't need to worry about it when it comes to asking for an extension to file. The process is done by filing a form.

Of all the complexities involved in the world of tax, filing an extension is not one. You need to simply print out IRS Form 4868, fill it out and send it in on or before April 15th, 2009. The form only asks you to state some basic information. You do not have to give a reason why you need an extension.

The process works automatically once the extension is filed. You are automatically approved. This means you have an additional six months to file your tax return. Importantly, this approval does not extend the time you have to pay the tax due. If you know you are going to owe money, then it must be paid by April 15th. If it is not, you will face penalties and interest when it is finally paid.

Although the tax return filing extension is automatically approved, you should not blow off your tax return. Get yourself organized and ready to go. If you don't, you'll be in a panic in October when the six month extension runs out. Getting another extension at that point in time is much harder and you must convince the IRS there is a valid reason to allow a second extension.

You are going to become sick and tired of filing your tax returns in a rush. When you've finally had enough, you should turn to some form of accounting software to keep track of your financial situation. If you keep up with the accounting each month, filling out your tax returns will be an absolute breeze when tax time comes around.

Then you can spend your time trying to figure out how to come up with the money to pay the bill!