The tax filing deadline is here and some taxpayers need more time to file. But an extension to file is not an extension to pay taxes. H&R Block offers these tips on filing an extension and payment options:
• Apply for an automatic extension — Use H&R Block extension services at an office or on the At Home software, visit www.irs.gov or call (800) 829-1040 for more information.
• File now, pay later — Taxpayers who file an extension have until Oct. 15 to submit their completed tax returns. By paying at least 90 percent of what they owe by April 15, they can avoid failure-to-pay penalties.
• File even if full payment is not possible — The penalty for failure to file a return or extension is 5 percent a month on the unpaid balance, whereas the penalty for failure to pay is only one-tenth of that, or 0.5 percent.
• Request an installment agreement — Taxpayers ready to file their returns but unable to pay the remaining balance due may consider an IRS installment agreement.
• Seek help— Taxpayers who are confused or need help should consult a tax professional.