5 Last Minute Tax Tips for Late Filers
If you are a bit of a procrastinator and have not yet submitted your annual tax return, do not worry. You are definitely not alone. There are millions of Americans who wait until the April 15th deadline to file their taxes – either because they have not had time to work on them yet, or perhaps they suspect that they will owe the IRS some serious money. Regardless of the reason, we have gathered some last minute tips for those of us who might not file until tax day!
1. Consider Filing an Extension
If you cannot complete your return by April 15th, then you should consider requesting an extension. You may not realize it, but you can get an automatic extension for 6 months by simply filing Form 4868.
One word of caution, however, an extension to file your return IS NOT an extension to pay. If you owe the IRS, they want it by April 15th regardless of whether you file your return. If you do not pay on time, you will be charged penalties and interest.
2. Decide Which Method of Filing Benefits You Most
If you are getting a refund this year, you should definitely file electronically, as your return will be processed faster and the refund will be yours sooner. However, if you owe the IRS money, you may want to consider submitting your return via mail. Paper returns are not as streamlined and easy to manage for the IRS as electronic returns.
3. If You Owe, Decide Now Your Plan for Paying
It is very tempting to put off filing your return because you owe money and hope that buying yourself some time will allow you to figure out a way to pay. In the long run, this will just cost you more money, not less.
If you can, spend some time now investigating possible ways that you can pay your tax debt. Credit cards will generally charge less interest than the IRS, so this is one option to consider. You can also look into home equity lines of credit or personal loans to get out from under the debt.
4. If You Cannot Pay
There are instances in which taxpayers are simply unable to pay their debt to the IRS. Rather than ignoring the return and prolonging the inevitable, it is may be wise to consider your payment options with the IRS.
An installment agreement allows you to pay your debt over time (instead of in one lump sum) and an offer in compromise allows you to settle your debt for less than you owe. The IRS has information about both of these programs on their website.
5. Get Support
If you are not sure if your calculations are correct, or if you have maximized your deductions, you may want to get a tax firm to review your return before you submit it to the IRS. It is possible that you owe less than you think.
Success Tax Relief is ready and able to help late filers submit an accurate return on time and can still help you look for additional deductions. It is never too late to get help! Call 1-877-825-1179 to speak with one of our tax professionals today.