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File your income tax extension before the April 18th income tax deadline

Consider filing a tax extension and do it online for free!

The few short days remaining before the tax deadline may not be long enough for you to get your records in order, especially if they involve such delicate matters as testimonials. In that case, you should file an extension. This is because you absolutely want to avoid the failure to file penalty as it is the most onerous. You can file a tax extension online for free right here.

Even if you don’t believe you owe any taxes, and therefore would suffer no penalty for late filing, it is strongly advisable to opt for an extension, because if it turns out you’re wrong it will cost you dearly. The penalty for late filing is 5% of the tax balance due per month up to a maximum of 25%. Filing a tax extension online will push your tax deadline forward six months to October 17th and exempt you from the penalty.

If you have a tax liability and owe the IRS money but are unable to pay in full a tax extension will also give you some breathing room to save the needed cash. However, note that you will still incur the penalty for late payment of taxes unless you can demonstrate reasonable cause to the IRS for not paying on time. The penalty for late payment is 0.5% of the amount owed for each month from the deadline until the tax is paid in full. You can avoid it by paying at least 90% of your tax liability.

In addition, the IRS will charge you interest monthly on the total owed until the tax is paid in full. The rate of interest is currently posted at 4% annually and is open to change quarterly. Note that irrespective of whether you’re exempt from the late payment penalty you will still be billed interest.

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The 2011 Income Tax Deadline is April 18th!

The income tax deadline this year is April 18th.
You can still file your tax return now.

If you’ve filed recently, are expecting a refund, and are wondering where is my tax refund, you can get a quick read on its whereabouts by using the Where’s My Refund online tool. The IRS Refund Cycle Chart may also prove helpful.

Late filers and procrastinators, you have a week left as of today. This should be enough time to collect your papers, organize them, and get it done, especially if you have a simple return with a single source of income and are opting for straightforward deductions and credits. As such, we urge you to file electronically: it’s fast, easy, safe, and inexpensive. You can get started right here.

If your return is more complicated, for example if you itemize your deductions, it is still not too late in the 2011 Tax season to get going. Remember that even if you choose to file an extension to file your taxes at a later time you will still have to furnish the IRS with an estimate of your tax obligation. So, it’s advisable to get an idea of where you stand tax wise. Continue reading “The 2011 Income Tax Deadline is April 18th!”

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The 2009 Tax Extension is October 15th

The season for E-filing tax returns officially ends on October 15th. You can still mail in your 2009 tax return after the deadline but your return will be considered late. Remember that all returns mailed after the deadline must be signed.

Tax returns filed prior to the closing of the tax season must have their postage affixed and be postmarked  by 11:59PM on October 15, 2010 in order to avoid late filing penalties. If you have a liability for tax year 2009 and you do not file by the deadline, penalties will be added to the amount owed and interest will accrue from the date of the original April deadline!

E-File my 2009 Return Now!