Don't Panic: 5 Tips for Stress-Free Last-Minute Tax Returns
It happens every year. You promise yourself that you won't wait until the last moment to file your federal tax return. But then life intrudes, and you wind up scrambling to make the deadline.
Relax. You are not alone. According to the Internal Revenue Service, 28 percent of individual tax returns are filed in the final two weeks. So take a deep breath, make yourself a calming cup of herbal tea and read these tips for last-minute filers, courtesy of the American Institute of CPAs.
1. Avoid the Last-Minute Rush
The U.S. Postal Service keeping some locations open until midnight on Tax Day -– the last possible moment to have your tax return postmarked without it being considered late -– and you can find a location with its online location tool.
Better yet, avoid the long lines and e-file your return. You can file until midnight on April 15, and there is no cost to e-file.
2. File an Extension If Needed
Individuals who need additional time should request an extension by filing IRS Form 4868, "Application for Automatic Extension of Time to File U.S. Individual Income Tax Return."
You can either mail this in or e-file it, but either way it must be done by April 15. As long as you fill the form out correctly and submit it by the deadline, an extension is automatically granted, and you have until Oct. 15 to file you returns.
3. File a Return Even If You Can't Pay Your Taxes Yet
If you expect to owe money to the IRS, you need to estimate the amount owed and either file your taxes or an extension by April 15. But even if you file an extension, that doesn't extend the date required to pay your taxes, just the date to file them.
As the IRS puts it: "The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options. The IRS will work with you."
4. Make Sure Your Return Is Complete
The pressure of trying to get your taxes filed before the deadline can cause you to make some simple mistakes that can cause your return to be considered incomplete.
%VIRTUAL-article-sponsoredlinks%The IRS has the right to assign additional charges or penalties when a person files incomplete or incorrect tax paperwork, though it usually only does so when the mistake leaves the individual owing money.
In any case, don't take any chances. Take a few minutes to review your returns to make sure you have filled in all requested information (such as Social Security numbers), attached all required forms and supporting documents and signed and dated your returns.
5. Don't Stick Your Head in the Sand
So let's say you totally blow it -- you owe taxes and you missed the filing deadline. What should you do next? Whatever you do, don't ignore the problem -- it won't go away.
First off, file and pay as soon as you can to minimize any penalty and interest charges (there is no penalty for filing a late return if you are due a refund). And if you owe tax but can't pay it all at once, you should pay as much as you can when you do file.
If you need more time to pay your federal income taxes, you can request a payment agreement with the IRS. Use the IRS Online Payment Agreement Application tool or file Form 9465, Installment Agreement Request.
No man is an island, or even a peninsula, so I encourage your feedback in the comments below. And don't forget to pick up my book, "Trading: The Best of the Best -- Top Trading Tips for Our Time."