Tax Tip of the Week
For the week of April 12, 2004

Avoid penalties for late filing

Does it look as if you might miss the April 15 filing deadline? Don't despair! There's still time to avoid a late-filing penalty — and you might be able to do it without filling out any forms.

To avoid a penalty, you must file a Form 4868 by the April 15 deadline. There are three ways to do this. You can fill out the traditional paper form and mail it to the IRS on or before April 15. But there are two easier ways. You can file for an extension electronically using IRS e-file, either through your own computer or through your tax professional. Or you can even e-file by telephone, using an IRS toll-free number. To do this, you'll need your 2002 return and you should fill out Form 4868 as a worksheet.

Any of these methods will gain you a four-month filing extension. But that only solves half your problem. To avoid interest and possible penalties, you must also pay any tax still owed for 2003 by the April 15 date. If you don't, you'll be charged interest on the amount you owe until you finally make the payment. And you might also face a late-payment penalty unless you have met one of the penalty exceptions.

Fortunately, there are also ways to make your required payment at short notice. If you file electronically, you can pay by automatic funds transfer from your bank. You can also pay by credit card through IRS-approved service providers. You'll be charged a fee for credit card payment, though.

If it looks as if you'll miss the deadline, contact our office. We can help you obtain an extension and minimize penalties.

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