Can’t meet tax filing deadline?

Breaking News: On Tuesday, the tax deadline day, the IRS Payment website crashed. Consequently, the IRS has extended the tax-filing deadline for all taxpayers by an extra day to midnight Wednesday, April 18, 2018.

This year's Tax deadline is April 18, 2018 for individuals, sole proprietors, single-member LLCs, and C corporations (with December 31 fiscal year-ends), but don't panic. You can file a tax extension by midnight on Tuesday, April 17 to push the filing deadline to October 15, 2018.
Note: March 15, 2018 was the tax deadline for filing 2017 tax returns or extensions for S corporations, multiple-member LLCs, partnerships.

The IRS wants you to pay all tax due by the original tax filing deadline April 18, 2018, even if you are filing an extension for 2017. Therefore, you should estimate your tax due and pay that amount with your extension. If you overpay, you will get a refund.

Remember, late filing and late payment are different. Filing for an extension only delays the date of your tax filing. It will not avoid penalties for any taxes owed. If you don’t owe the IRS anything or get a refund, there is no penalty for failing to file your tax return by the deadline, even if you do not get a tax extension.

The IRS considers failure-to-file a more serious issue than failure-to-pay and charges a heavier penalty for failure-to-file. Be sure to file an extension.

If you file an extension for 2017 but do not pay all tax owed by the original filing deadline April 18, 2018, the IRS will charge a failure-to-pay penalty.

Some states may require you to file a separate extension, so check your state’s tax law.

What if you owe taxes when you file tax return?

The IRS gives the following four Individual Payment Plan Options & Costs:

1. Pay now

$0 setup fee
No future penalties or interest added
Paid with automatic payments from your checking account or check, money order or debit/credit card.
Fees apply when paying by card.

2. Short-term payment plan (120 days or less)

$0 setup fee
Plus accrued penalties and interest until the balance is paid in full
Paid with automatic payments from your checking account or check, money order or debit/credit card.
Fees apply when paying by card.

3. Long-term payment plan (installment agreement) (paying in more than 120 days through automatic withdrawals)
Paid through direct debit (with automatic payments from your checking account).
$31 setup fee
Plus accrued penalties and interest until the balance is paid in full

4. Long-term payment plan (installment agreement) (paying in more than 120 days)
Not paid through direct debit.
$149 setup fee ($43 if low income)
Plus accrued penalties and interest until the balance is paid in full
Can be paid by any other electronic method such as direct pay or debit/credit card. May also be paid by check or money order.
Fees apply when paying by card.

A tax practitioner can help you prepare your federal and state tax returns, including filing tax extensions.

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