Tax Extensions Due October 15 - What Happens If You Can’t Afford to Pay Your Taxes?
If you filed for an extension on your taxes in April, your taxes must be filed by October 15. So those of your who have been procrastinating better start waking up!
When I was on KBIG-FM 104.3 Los Angeles earlier this month, I talked about what happens when people can’t pay their taxes come April 15th or October 15. It’s a common problem and a lot of people end up in tax trouble because they don’t file on time even with the extension because they don’t have the money to pay.
Not filing your taxes is the worst thing you can do because you can incure a 25% failure to file penalty right off the top. So what we tell our clients is that no matter how much is owed, if they enclose a check for $5 or $10 with the return and file it on time, that’s going to save them a lot of aggravation in the long run because:
1) It cuts down on the failure to file penalty, so you take that 25% penalty off the table.
2) It creates a record at IRS that says you actually filed on time and they have to post that $5 or $10 check to your account.
So it really does kill 2 birds with one stone if you go ahead and file and make some kind of payment.
Listen to more of my expert tax advice on MyCommunity with Jason Griffin.
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Tags: failure to file penalty, IRS tax extension, tax expert, tax help, tax resolution
