Taxes Due

[zazu]

hello all,

I hope someone has some really great advice because i need it right now.

I applied for an extension and its due this friday. I'm not going to be able to pay this bill until the 23th.

How long does it take before they come after me??

[Deleted]

Do you owe taxes or just the return?

[zazu]

It's my 2010 individual tax return.

[Deleted]

But do you owe taxes on the return or do you just need to file the return?

[zazu]

Oh sorry. I owe taxes.

[Deleted]

Give the IRS a call and let them know your situation. You actually owed the taxes on 4/15, even though you filed an extension. The extension only applies to the return, not the payment of what you owe.

But give the IRS a call. They are actually very good and very helpful in these sorts of situations. That is much better than waiting for them to come find you.

[zazu]

thanks Archie,

I will do that. I did call them but my hold time was an estimated 20 minutes. I'll wait this time.

[mwcpa]

the "normal" extended due date, if a timely and properly filed extension is submitted, is October 15, 2011 for 2010 filings.

if the extension was filed and an amount of tax is owed, and that tax is greater than 10% of the actual computed tax the IRS will assess penalties at a rate of 5% per month of the balance due... plus interest.... if one owes less than 10% of the actual tax then the penalty is 0.5% per month of the balance due ... plus interest...

generally, the "best" days to call the IRS are Tuesday, Wednesday and Thursday... except when Tuesday is the "first" day of the work week, like today.... Mondays are the worst day to call IRS.... everyone gets to review mail over the weekend and everyone with an IRS love letter calls on Mondya... 20 minutes though is not bad....

even if you cannot pay, it is best to file asap.... failure to file costs 5% / month.... failure to pay 0.5% / month....

As Archie notes... if you are having a short term issue IRS will work with you.... if you are habitually filing late and not paying timely do not expect lienency....

[zazu]

;D Yay i finally got through and they gave me an extension to October 9th!!!

[TheOtherMe]

An extension to do what on October 9?

[zazu]

An extension to do what on October 9?

To pay my taxes owed in full by Oct 9th.

[TheOtherMe]

Did they tell you how much penalty and interest? Now get the return filed and file on time next year. If you can't file an extension and remember that is not an extension of time to pay, only an extension of time to file.

[mwcpa]

I concur theo....
if you cannot pay by 4-15 it is always better to file a proper tax return without payment then file an invalid extension or do nothing....

Failing to file is always worse than failing to pay....

IRS can work with you if you cannot pay.... but if you do not file and do not have "reasonable" cause you can expect lots of troubles and not much lienency....

[zazu]

I did file my taxes and sent them off april 15th. I owed back taxes and got an extension to pay not to file. Sorry if i confused anyone.