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U.S. Tax question concerning extension

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  1. chknpotpie chknpotpie is offline

    Posts: 1,045
    Joined: Jan 07

    Apr 13th, 2010 (4/13/2010 2:25am)

    I was under the impression I could file for an extension, but did not realize I had to estimate the amount and pay it on April 15th. I can have the amount available in about a month, but not by the 15th. Am i fucked? Or is there a way around this? Let's say I file on the 15th but don't pay the amount. Or I file in October without filing anything now? What would the penalties be?

    Any help would be appreciated.
  2. MYBLUEDOG MYBLUEDOG is offline

    Greenville, MS
    United States

    Posts: 1,999
    Joined: May 07

    Apr 13th, 2010 (4/13/2010 5:39am) in reply to chknpotpie

    When you file your returns, you can explain that you don't have all the money to play the taxes immediately and ask to make scheduled payments.

    If you have the returns filed on time you will not incur late filing penalties. You may have to pay interest on the late payments. Interest accrues on the unpaid balance just the same as it would on credit cards and or loans The sooner it's paid off the less interest you will have to pay,.
  3. heynow21 heynow21 is offline

    Kansas, OK
    United States

    Posts: 3,032
    Joined: Mar 06

    Apr 13th, 2010 (4/13/2010 6:33am) in reply to chknpotpie

    You're not fucked, but you'll end up paying penalties. The IRS is actually really easy to deal with, I've been in debt to them for years. Call them up and explain the situation, they'll tell you what to do. You can break it up into a payment plan.
     
  4. CPAEvil CPAEvil is offline

    Gainesville, GA
    United States

    Posts: 40
    Joined: Mar 06

    Apr 13th, 2010 (4/13/2010 2:27pm) in reply to heynow21

    Ok, the best thing to do is if you have your return done, mail it in by the 15th. If you have ANY amount, pay it. Either way, they will send you a bill for the difference in about 6 weeks and you can pay it then. If you still dont have the money, you can get an installment agreement.

    The purpose of an extension is to get your stuff together. Taxes are due on April 15th. They will charge you penalty and interest on what you owe from April 15th until they receive the balance. If you need help, feel free to contact me at annm@johnstoncpas.com I also did a tax Q&A here on Pocket Fives and podcasts.
  5. ugain2004 ugain2004 is offline

    GA
    United States

    Posts: 474
    Joined: Mar 10

    Apr 13th, 2010 (4/13/2010 3:20pm) in reply to CPAEvil

    Always remember an extension is an extension of time to file, not of time to pay.
  6. chknpotpie chknpotpie is offline

    Posts: 1,045
    Joined: Jan 07

    Apr 14th, 2010 (4/14/2010 5:52pm) in reply to chknpotpie

    Thanks for the replies..really helped me out, had underestimated my taxes and have money tied up elsewhere. But was really stressing about the money part.
    Thread Starter
  7. tmac2424 tmac2424 is offline

    Woodinville, WA
    United States

    Posts: 1,328
    Joined: May 07

    Apr 14th, 2010 (4/14/2010 8:07pm) in reply to chknpotpie

     
    Originally Posted by chknpotpie View Post

    Thanks for the replies..really helped me out, had underestimated my taxes and have money tied up elsewhere. But was really stressing about the money part.



    hate it when that happens
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