'I won’t make the tax filing deadline!' Now what?

Talk about it

Even though the Emancipation Day holiday observed in Washington, DC postpones the tax filing deadline to April 18, that still may not be enough time for some tax filers.

If you can’t meet the deadline, the Minnesota Society of Certified Public Accountants (MNCPA) encourages tax filers to request an extension using IRS

Form 4868 found on the IRS website (http://www.irs.gov/pub/irs-pdf/f4868.pdf). The penalty for not filing is 5 percent a month.

"Requesting an extension provides an additional six months to get records and documentation in order to complete one’s tax return,” said MNCPA member William P. Miller, a Minnesota CPA in private practice. “But it is not an extension of time to pay.” The taxpayer must estimate how much is owed and pay that amount either by check, credit card or online. If you do not pay your tax in full, the IRS will calculate penalties and interest on the outstanding balance.

“Late filers don’t have to file an extension form in Minnesota,” said Miller. “But just like the federal government, a late filer must estimate state taxes owed and submit it by April 18.” Failure to pay the current tax liability by that date will result in both interest fees and a late filing penalty.

Taxpayers struggling to figure out tax returns can seek assistance. The IRS offers face-to-face assistance at offices in Minnesota. For a list of offices, go to: http://www.irs.gov/localcontacts/article/0,,id=98289,00.html.

AccountAbility Minnesota also provides tax preparation assistance to low-income Minnesotans. For more information go to: http://www.accountabilitymn.org.

Tags: updates, tax, irs, money