IRS Reminder – October 15th Tax Extension Deadline

The IRS recently posted both a video and a press release to remind taxpayers that if they filed for an extension, the due date is October 15th, 2013. According to the IRS, many of the more than 11 million taxpayers who requested an automatic six-month extension this year have yet to file. Below the video is information the IRS wants to make sure taxpayers are aware of:

Here are exemptions to the October 15th filing date:

  • Members of the military and others serving in Iraq, Afghanistan or other combat zone localities who typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.
  • People with extensions in parts of Louisiana and Mississippi affected by Hurricane Isaac also have more time, until Jan. 11, 2013, to file and pay.

Make Sure to Check Tax Benefits

  • Before filing, the IRS encourages taxpayers to take a moment to see if they qualify for often-overlooked credits and deductions such as Earned Income Tax Credit or the American Opportunity Tax Credit or other educational tax benefits.

E-file – Quickest Way to File and Receive Refund

The IRS urges taxpayers to E-File touting its speed, accuracy and security – particularly helpful for folks who are rushing to meet the October 15th deadline. Everyone can use Free File with incomes of $57,000 or less, or online fillable forms, the electronic version of IRS paper forms available to taxpayers at all income levels.

Fresh Start Initiative Helps Struggling Taxpayers

In many cases, those struggling to pay taxes qualify for one of several relief programs, including those expanded earlier this year under the IRS “Fresh Start” initiative.

The IRS has made it possible for taxpayers to set up their own IRS payment agreement on line in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement to set up a monthly payment agreement (like a car payment) for up to six years or request a short-term extension to pay. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS.

Here is a previous Tax Resolution University post that compares paying tax debt using the IRS Installment agreement or paying tax debt using a credit card if you don’t have the cash on hand.

Sometimes smart people rush to get the IRS off their backs and “self-finance” what they owe in back taxes. In some cases that may not be the best choice as the fees associated with credit cards can be very high. Hiring the services of a certified tax professional can help you make an informed decision for the best way to pay their tax debt. Once people are shown their financing options they are sometimes surprised that settling their IRS tax debt directly with Uncle Sam makes better sense.

More Tax Help, IRS News and Tax Relief Tips:

  1. Finding Tax Help for IRS Tax Debt
  2. IRS Bankruptcy-Five Tax Relief Options for Back Taxes
  3. Ask the Certified Tax Specialist – Small Business Back Taxes
  4. IRS Helps Unemployed Avoid Penalties
  5. Three IRS Options to Pay Tax Debt

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