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3 Bumps

I have to file a tax extension-and I know I will owe and don't have the money (tax folks only pls)

I am in a bind. I have to file an extension due to family issues and conflicts, there is not going to be enough time to even come close to being done filing.
I also know I'm going to owe, while I can give a best guesstimate of what I will owe, I cannot pay any of it at this time. I know I will have "late fees"etc---

Can I just file the extension with my guesstimate and not send money? What will occur?
What if it's more than (or less than) what I will actually owe?

Kind of freaked out about this

Answer Question
 
Anonymous

Asked by Anonymous at 1:23 PM on Apr. 11, 2011 in Money & Work

Answers (12)
  • I'm sorry I can't help, but here's a bump.
    TARARENEE

    Answer by TARARENEE at 1:26 PM on Apr. 11, 2011

  • You really should send close to what you owe. There will be penalties and interest on what you owe if you do not send any or do not send enough.
    elizabr

    Answer by elizabr at 1:27 PM on Apr. 11, 2011

  • The IRS allows tax payers to apply for an automatic 6 month extension to file their taxes. There is one big caveat though – if you owe money on your tax return, at least 90% of the balance is due on April 15th, regardless of whether or not you have filed your taxes or not.

    I'd call and set up a payment plan. Be proactive, don't make them come looking for you.
    itsmesteph11

    Answer by itsmesteph11 at 1:27 PM on Apr. 11, 2011

  • You don't have to send money. The IRS will then send you a letter stating how much you owe and for you to either send it in or call and set up an installment agreement. If you don't pay it off by next year, if you get a refund it will just go towards what you owe. As long as you talk to them, communicate with them and do not ignore them, you will be fine.
    JamieLK

    Answer by JamieLK at 1:29 PM on Apr. 11, 2011

  • Call H&R Block and speak to one of their top tax associates. They may be able to advise you on what to do. I know that when I worked for them...(I was a novice I assure you) this happens to many people and they would have you speak to the IRS. They can help you make payment arrangements...like garnish your check rather than cleaning out your bank account. Call and get some advice...either HRBlock or the IRS directly. Its better to do something responsible about it than to ignore it.
    Anonymous

    Answer by Anonymous at 1:30 PM on Apr. 11, 2011

  • You can file an extension, and you will be assessed interest and penalites from April 18,th on,,Depending on how much you owe, it may be better to file now, pay as much as you can, and then set up payment arrangements for the balance, you will have to pay interest on the whole amount, so if you can send something now, it will lower your total amount. Are you 100% positive you will owe? If you have your w2's and everything, you can just drop them off or use turbo tax,,it should only take about 30 minutes to get done, you might be suprised, and even if not, you will have an exact idea of how much you owe.
    kimigogo

    Answer by kimigogo at 1:33 PM on Apr. 11, 2011

  • Link text

    This is a page from the IRS website
    itsmesteph11

    Answer by itsmesteph11 at 1:37 PM on Apr. 11, 2011

  • I have receipts and such, it would take an assload of money to have someone else go through all my receipts, invoices, deductions. It's not a simple easy peasy tax file. I am 100% certian that I will owe......the reason I am not filing now is the time constraint (my attention has been devoted to caring for an ill family member) Either way, file now, or ask for an extension--I will owe.

    So, send something now, with the extension---------------------------- and when I actually do file, send more? ???

    Don't know what to do?
    Anonymous

    Comment by Anonymous (original poster) at 1:37 PM on Apr. 11, 2011

  • don't know if this helps you, but did you know you have until the 18th this year?  It is because of a holiday in DC that extends the tax deadline.  And to answer your 2nd post...........yes, send some now with the extension and then the rest once you file.


    http://www.irs.gov/newsroom/article/0,,id=233910,00.html

    elizabr

    Answer by elizabr at 2:05 PM on Apr. 11, 2011

  • I do not know why I got 2 vote downs. But what I said is exactly what my dh and did and have set in order. We did not send in any money when we owed and we have an installment agreement set up with the IRS and pay monthly. They never garnished our wages or cleaned out our bank account. This year we got a refund but it goes toward paying our back owed tax. I wouldn't have answered if I didn't know what I was talking about. I wasn't trying to mislead you.
    JamieLK

    Answer by JamieLK at 5:54 PM on Apr. 11, 2011

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