Avoiding Tax Time Problems

Do you want to avoid the last-minute rush for doing your taxes? Here are some stress reducing ideas that might help.

• Don’t Procrastinate, it can only make it worse - Resist the temptation to put off your taxes until the very last minute. Your hurry to meet the filing deadline may cause you to forget potential sources of tax savings and will probably increase your risk of making an error.
• Don’t Go Crazy if You Can’t Pay - If you can’t pay the taxes you owe withy the return, consider some alternatives. You can apply for an IRS installment agreement, suggesting your own monthly payment amount and due date, and getting a reduced late payment penalty rate. You also have other options for charging your balance on a credit card. There is no IRS fee for credit card payments, but the credit card companies might charge a convenience fee. Electronic filers with a balance due can file early and authorize the government’s financial agent to take the money directly from their checking or savings account on the April due date, with no fee.
• Request an Extension of Time to File – But Pay on Time If the clock runs out, you can get an automatic six month extension of time to file to October 16. The extension itself does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late payment penalty if you have not paid at least 90 percent of your total tax by that date. Call us for a variety of easy ways to apply for an extension.

This entry was posted on April 12, 2007 at 11:32 am and is filed under What's New. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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