April 15 is the deadline to file your tax return so you still have time to arrange your papers and present it. However, we know that there are setbacks that could prevent you from making your return on time and for that reason, here we tell you what options you have.
Let’s start with the basics, There are two types of penalties for not filing your taxes or not paying them. It can be a failure to file (FTF) which is the type of penalty that is applied when the tax return is not filed on time. On the other hand, there is the failure to not pay (FTP) which is the fine that is applied when the taxpayer does not pay on time what she owes.
If you don’t owe the IRS money that you will need to do is contact the IRS directly at 1-800-829-1040 to request an extension of time or penalties will apply. Once you have your extension you will have until October 15 to file your return. Remember, the longer you take to file your taxes, the longer your refund will take to arrive.
Now, if you owe the IRS money, the situation is less encouraging, since the IRS expects your payment before April 15. If you cannot do it, what you should do is contact the IRS directly to discuss your extension and payment arrangement.
“The IRS determines how long, what is the amount and what is the interest that you are going to pay, whether you pay it, make the payment arrangement for two weeks or make the arrangement to pay it. [de forma] monthly but you already do that directly with the IRS, “says Dianifer Rodriguez, who works at the Financial Advisory Window of the Mexican Consulate in Los Angeles.
However, it is important to note that this arrangement carries penalties and interest, so if you owed $ 1,000 in the beginning, you could end up paying $ 1,500 in the end. “To avoid penalties and interest it is better that they try to pay as soon as possible or in a short time so that they do not have to pay more than the bill,” added Rodriguez, and in fact, if you pay more than 90 percent of your debt, the IRS could remove the penalties.
A tip for next year
Rodriguez, who helps taxpayers file their returns for free, recommends taxpayers make advance payments to the IRS throughout the year. This way, instead of making a large payment during the tax season, you can distribute it for a whole year and so you could avoid paying penalties and taxes when requesting an extension. Also, if you overpay, nothing happens, since the IRS returns the surplus.