What To Do Before the October 15th Tax Extension Deadline if You Need Tax Help for Unfiled Tax Returns or IRS Back Taxes

If you’re one of the many taxpayers who filed for an tax extension in April, you must file your 2009 tax returns by October 15th in order to avoid IRS penalties.

In this current economic situation, it’s common for people to be unable to pay both their bills and the IRS. However, the worst thing you can do is to avoid the IRS altogether because you will only have more back taxes and IRS penalties to pay later on. There is a tax solution for every unique situation, even if you have no money to pay your taxes in full, you can file your tax return on or before October 15th and send it in with a money order or cashier’s check for $10.00.  This will ensure two hugely important things:  1.) It will take the IRS’s power away to assess a 25% failure to file penalty away, and 2.) it will create a computerized record at IRS that you filed on time and made a good faith and credible effort to pay something.

Here’s what you can do before the October 15 tax extension deadline if you have unfiled tax returns or IRS debt from back taxes:
•    Get a good attorney or tax resolution specialist. You are in dangerous waters here where only an expert tax resolution specialist or attorney can help you. To get the back taxes help you need, contact an attorney or tax resolution specialist. They are on your side. The IRS is not.

•    You need a sense of urgency. If you haven’t filed your tax return before the April 15th deadline, you need to file for an extension using Tax Form 4868, Application for Automatic Extension of Time To File U.S. Income Tax Return.  Not filing your taxes is the worst thing you can do because you can incur a 25% failure to file penalty right off the top.  Failure to file tax returns may be construed as a criminal act by the IRS, punishable by one year in jail and $10,000 for each year not filed.

If you haven’t filed for this year, even after April 15th tax deadline you can still file for a tax extension using tax form 4868. A tax extension provides tax help because it can stop the “failure to file” penalty clock before it reaches the maximum. Get tax help from an attorney or tax resolution specialist if you’re tempted to file for October 15th tax extension after the April 15th deadline has passed.

•    You need to whip out your checkbook, even if you can only pay $5. The bad news is that even taxpayers who received a tax extension for filing are not granted more time for the payment of taxes owed and may need income tax relief.

If you fail to pay your back taxes due, you will incur additional penalties for “failure to pay”. Any tax attorney will tell you that to avoid back tax penalties and interest, ideally you should pay 90% of your estimated taxes when you file your tax form 4868 on April 15th. To avoid additional back tax penalties, taxpayers should file by the deadline and pay as much as they can. You will still have a failure to pay penalty, but it’s much less.

Our attorneys tell our tax relief clients that no matter how much is owed, if they enclose a check for $5 or $10 for back taxes with the return and file it on time, that’s going to give them tax help instantly because:

1) Filing cuts down on the failure to file penalty, so you take that 25% penalty off the table.
2) Writing a check for your back taxes creates a record at IRS that says you actually filed on time and they have to post that $5 or $10 back taxes check to your account.

•  You need to discover quickly whether you owe the IRS more back taxes or you’re due for a refund. If you overestimated your back taxes in April and paid the IRS too much, then you’ll get a tax refund as soon as you file your full 1040 tax return, hopefully long before the October 15th tax extension deadline.

•    You may need tax software to discover your IRS debt from back taxes. By October all those discounted tax software boxes offering tax help will be long gone. A tax resolution specialist will have the software you need going back a decade to calculate both state and federal taxes. If you owe back taxes for more than one year, a good attorney or tax resolution specialist may be your only shot at getting the tax help you need.

•    You need to get your paperwork in order. Filing an October 15th tax extension means you have more time to collect the final paperwork you need. If you have been the victim of a financial crime, a good attorney can go back and file amended returns that can drastically improve your back taxes problem.

•    You need to act quickly or the IRS will. If you don’t file a tax return by the October 15th tax extension deadline, the IRS may file one for you. If you don’t get tax help from an attorney, the IRS may prepare a “Substitute For Return” for delinquent taxpayers. It’s important to file a tax return as well as any prior delinquent tax returns as soon as possible to save money and avoid significant long-term consequences. Get professional tax help so that you get all the tax relief you’re allowed.

•    If you owe back taxes for more than one year, all your prior tax returns must be filed to be eligible for income tax relief. All back tax returns must be filed before the IRS will entertain any type of tax settlement.

•    You need to realize that this is your last chance. Can you file for an extension past the October 15th tax deadline extension? Not a chance. The IRS will occasionally extend an extension beyond October 15th for a class of people who have suffered a natural disaster. If your home wasn’t destroyed by a hurricane, then your chances of getting a tax extension beyond October 15th are about the same as winning the lottery.

I recently blogged about why people tend to procrastinate on filing taxes–whether it’s you don’t have the money to pay or you’re paralyzed by anxiety–you are not alone. Read more about how you can overcome your tax procrastination.

It can be overwhelming to deal with IRS tax problems—ignoring the IRS when you don’t have enough money to pay is not the solution. To avoid racking up enormous sums of IRS penalties and back taxes, seek professional tax help today. A well-qualified attorney, tax resolution specialist or CPA can significantly reduce your tax debt by negotiating with the IRS on your behalf.

More Tax Help, IRS News and Tax Relief Tips:

  1. Tax Help News: IRS Enforcement to Get Priority, Big Bucks in 2010
  2. IRS Help and Income Tax Relief for Individuals and Businesses Unable to Meet Tax Obligations
  3. Tax Help News: If You Don’t File Your Taxes, the IRS May File Them for You
  4. IRS Relief News: How to Determine if Bankruptcy is a Viable Tax Relief Option for Resolving IRS Back Taxes
  5. IRS Relief News: What Americans With Back Taxes Need to Know About Reaching Out to the IRS for Tax Help

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3 Responses to “What To Do Before the October 15th Tax Extension Deadline if You Need Tax Help for Unfiled Tax Returns or IRS Back Taxes”

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