What to Do If You Can't File Your Taxes on Time

The clock is ticking. In less than two weeks, US federal income taxes are due. For those procrastinators out there, the deadline is quickly approaching. Time to get to business — and fast.

But what if you’re more than a lazy daisy? Perhaps there’s a good reason for your tax delay and even with the time you’ve taken, you still can’t file on time? Fortunately, CNN Money has some worthwhile information for you:

Good news: You can have a six-month extension. Bad news: You still have to pay your taxes by April 15.

File Form 4868 (download a copy from irs.gov or your tax prep program will provide one), and use last year’s return to estimate what you owe or let your tax software do it for you. It’s better to overestimate and get a refund later; if you’re under by more than 10%, you’ll owe interest of 7% on the amount you underpaid by, plus a penalty of up to 25% of the underpayment.

Yeah, it’s not the best solution, but it’s a decent alternative if you simply can’t file. Seven percent of taxpayers go for the extra time, so apparently many people have issues that make filing by April 15 difficult to impossible.

And for those of you who haven’t done your taxes yet but plan to, CNN also offers six top tax savers, a listing of various last-minute tax moves that could save you a bit here and there. See you at the post office near midnight on April 15. 😉

Six top tax savers [CNN Money]


(Photo: chadwbecks)

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.