Stressed About Your Tax Return? Get an Automatic Filing Extension
If April 17th seems like it is approaching faster than ever this year, perhaps it is time to consider filing an extension. I myself am still waiting on several 1099 forms, some of which had to be corrected. Here’s what I dug up for us procrastinators 
What exactly does filing an extension get me and how do I do it?
Sending in IRS Form 4868 by April 17th will land you an automatic six-month extension until October 15, 2007 to file your tax return. You can either mail in the paper form or use a tax software package. If you are eligible for Free File, you may be able to e-file for free as well. However, it is important to note that filing the form does not change the due date for when you have to pay any owed taxes.
How much do I need to pay to avoid late-payment penalties?
You must still pay at least 90% of your total tax due by April 17th in order to avoid penalties for late payment. However, you will still be liable for any interest accrued on any balance due when you file your return. Therefore, it’s a good idea to overestimate your taxes owed initially, and then plan on receiving a small refund when you officially file.
What I intend to do is just run a quick online tax return that pads my income a bit and also neglects any itemized deductions or business expenses. If you stop before actually filing, you can get a quick and dirty number without having to pay anything.
If it looks like you are getting a refund already, then you don’t need to do anything more. Otherwise, any tax owed can be paid via regular employer withholding, estimated tax payments, or you can simply attach a check along with Form 4868. If you e-file, you can also pay via an electronic withdrawal from your bank account or with a credit card (subject to an additional fee).
Don’t forget to also file an extension for your state taxes!
Every state has their own rules and forms, but generally they give you same deal: you can easily get a extension to file, but any taxes owed are still due by April 17th.
March 7th, 2007 at 5:47 am
Deadline for filing a federal return is April 17 this year because the 16th is a holiday in D.C.
March 7th, 2007 at 10:40 am
i assume my 1099’s are all correct. what kind of errors did you have? maybe i should doublecheck mine.
March 7th, 2007 at 11:04 am
Thanks, Hal. I was wondering why half the forms said 16th. April 17th
I changed the Tax ID and business name in the middle of this year, so some vendors managed to put my personal name + biz tax ID, and others chose instead to put my biz name + social security number. It’s a mess. I think Ameritrade just sent me a corrected 1099 too for some dividends?
March 7th, 2007 at 11:22 am
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March 7th, 2007 at 3:18 pm
one thing that’s nice about Texas, is no state income tax!
May 1st, 2007 at 1:45 pm
Hi. My question is this: I placed our tax info in accountants hands first week of Feb. She filed for extension after having our paperwork two and a half months. Blamed us that “remember you brought in such and such late…” Well, no we didn’t, she was passing the buck. She filed for an extension without ever contacting us at all. We found out after lengthy phone tag and ignored calls. She is still ignoring our questions and inquiries.
All we want to ask her is…”Will we have to wait til later this year, like months from now before actually filing, waiting, and receiving our refund or could that happen fairly soon?” By the way, we WILL have new tax representation next year! Thanks, C.M. McGuire
May 3rd, 2007 at 2:17 pm
C.M - Wow, you sound like you used the same tax representative that I did. I am so annoyed at this point, don’t even know if I can believe that he filed the extension. I am walking myself in his office tomorrow and demanding my folder of personal info and I will go online and use turbo tax. I know I owe the state and now I will have to pay penalties and interest for his carelessness. My husband and I get the runaround daily when we call - he always claims our taxes will be don tomorrow - well tomorrow turns into another tomorrow. Good Luck.