Taxpayers who have procrastinated until the last minute to file their taxes must take certain steps to avoid additional interest and penalties by the slightly extended deadline of April 15. The first step is to file IRS form 4868 for an automatic extension of time to file the return. This must be done by April 15 to prevent a late filing penalty.
It is important to note that filing an extension does not act as an extension to pay any balance due. To avoid late payment penalties, 100% of the prior year’s tax balance must be paid in full by April 15. Taxpayers are advised to make a payment with the form 4868 that is more than sufficient to cover any anticipated taxes that have not already been withheld or paid through estimates.
Taxpayers should also be aware that the extension to file is not an extension to pay, which may present challenges for those still awaiting documentation to complete their taxes. It is recommended to make a solid estimate on the high side for the anticipated tax balance.
Extensions for local income taxes vary by taxing authority, with organizations like RITA and CCA requiring a copy of the federal extension to be attached to the local return. Taxpayers are urged to check with their local taxing authority to ensure proper extensions are filed to avoid penalties and interest charges.
Whether taxpayers are able to file by April 15 or need to file an extension, it is crucial to get something filed and to remember that an extension to file is not an extension to pay.