posted on April 13, 2012 18:19
Taxes are due this Tuesday, April 17th. Many are wondering what will happen they don’t file on time.
The best way to avoid penalties and late fees is to file an extension.
Enrolled Agent at T.A.M. Associates Tamara Torrey said the extension is only an extension on filing your taxes, not an extension on paying them. She said you should estimate how much you owe then try and pay it.
“Even if they can’t pay it they still should file the extension, because they’re going to get two penalties instead on one if they don’t,” said Torrey.
If you don’t file an extension people will have to pay 5% as a penalty on whatever you owe. Torrey said if you file an extension the interest will be 3% per month on your unpaid balance.
“If you file late, because you didn’t file an extension you not only have your late filing penalty, but then you have your late payment penalty,” said Torrey.
It’s not too late to do your taxes or file an extension. File online at IRS.GOV, you can pay your balance there by credit card or print the form off and mail it in with a check.