The tax deadline is approaching, and that doesn’t leave too much time left for those who haven’t filed their taxes yet, and get them completed before April 15. Missouri IRS spokesman Michael Devine says if you haven’t had a chance to get your taxes done, now is the time to work on them.
Devine says there are options however, for those who might not be able to meet the required tax deadline, such as an automatic six month extension; but you have to apply for it first. “You’ll need to fill out a form and you can do that electronically, through the IRS.gov website,” he said. “You can use our ‘Free File’ tool or you can print it out and mail it in.”
There are also penalties. “There’s a failure to file penalty, there’s a failure to pay penalty, interest will accumulate on the amount that you owe,” Devine said. He says the failure to file penalty is ten times larger than the failure to pay penalty.
Devine says that can go as high as 25 percent of the unpaid balance, which accumulates monthly on the amount that’s owed. The interest charge rate changes quarterly and that compounds daily. “So if you owe money the best thing you can do is to file your tax return on time and then contact the IRS. Let us know you filed your tax return, you have a balanced due but you don’t have the money and ask us what the options are,” he said.
Devine says if you are expecting to get a tax refund back, use direct deposit because that way you can get your money back into your bank account in 21 days or less. If you file and have a balance that’s due, which means having to pay more taxes, you can write a check or you can use several of the electronic methods on the IRS website so you can pay the tax bill and not have to worry about filling out a check.
He says there is also the option that the IRS can set up a payment plan for those who can’t afford to pay their taxes by the deadline.
For more information visit, www.irs.gov
AUDIO: Mary Farucci reports. (1:00)