If you were one of the individuals who filed an IRS extension Form 4868 this past April, your deadline is fast approaching! The Form 4868 is a 6 month extension from the typical deadline of April.
October 15th also happens to be the last day you can claim your economic stimulus rebate. (Figure out how much you are due)
There are a few important things you need to keep in mind as you go to file your tax return:
Interest Owed
You owe interest on any 2008 taxes that were not paid by the normal deadline of April 15, 2009.
Still Can’t Pay?
What happens if you are stuck with the bill on October 15th and still can’t pay?
You can request a payment plan by filing a Form 9465. As payment plans go, though, you will incur fees, penalties, and interest. However, it may be beneficial because it spreads the payments out into monthly 
payments. The agreement itself tacks on another $105 on to your tax bill, and any changes to the agreement tack on an extra $45. Paying in advance does not incur penalties.
With all of that being said, when you arrange your monthly payment you should aim to make it a dollar amount you can definitely afford to pay each month. You do not want to risk defaulting.
The IRS is glad to get there money in any way possible, so they offer a lot of payment methods. You can do:
- direct deposits,
- payroll deductions (Form 2159),
- money orders,
- credit cards,
- online payments,
- and a few more options.
If there is one thing the Federal Government is good at, it is getting their tax money!
Risks of Not Filing
If for some reason you choose to still not file a return, there are a few risks associated with this decision:
- Penalties will be assessed and added to the total amount you owe.
- The IRS will automatically file a return for you. This will naturally be bare bones, omitting any exemptions or expenses you are entitled to.
- Based on the IRS substituted return, the will initiate collection. They can put a lien on property and even levy your wages or bank accounts.
With all of that being said, make sure you file a tax return to ensure you get the expenses and exemptions you are due. Don’t turn a problem into a nightmare.
Good Luck!
If you need any additional information, feel free to ask me. The IRS website is a treasure chest of information and I would be more than happy to assist you in navigating it!
I'm MLR. After graduating from college debt free, I decided to write a blog encouraging people to adapt responsible and sensible personal finance rules.
October 2nd, 2009 at 8:38 am |
Good reminder. I still have to file my taxes… They are done – I just need to swing by my accountant’s office on the way home from work today. Next year I plan on getting them done on time!
Patrick´s last blog ..Federal Tax Return Deadline Reminder
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MyLifeROI Reply:
October 3rd, 2009 at 10:00 am |
@Patrick,
Heh :) But procrastination is so much easier!
I see we wrote pretty similar posts. Hammering this point home, aren’t we? I don’t want to hear about anyone claiming they forgot now :)
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October 4th, 2009 at 8:48 pm |
I do have one credit card I use that gives cash back rewards. I always pay it off in full every month, and have it set up so that two of my monthly recurring bills automatically go to it. (Cell phone & internet)
This way, I can just pay it all off and save logging into separate sites – and after a few months I get $20 back :) It’s the only reason I have a credit card, actually. While sure it’s not a lot, it pretty much is like getting paid to pay your bills :)
Chelle´s last blog ..The Meaning of Living Simply
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