What you need to know about filing a tax extension
PORTLAND, Ore. – Tax day is just around the corner and by now you probably have a good idea if you'll be able to meet the deadline. However, as the saying goes, time is money – especially when it comes to the Internal Revenue Service.
Filing a six-month extension is easy: Just log on to IRS.gov and search for "Form 4868." (Here's the link to the exact form.)
However, if you think you owe the government money, experts say it's important to estimate your tax bill and pay it in advance. That's because when you get an extension, the irs expects to get paid back the money you owe, plus interest. Plus, your interest payments will be a lot smaller if you pre-pay.
"If there is a tax to be due, then you have to have 90 percent of that tax to be paid in on April the 15th," said Arthur Auerbach, a CPA at Goodman and Co.
There are other penalties for underestimating your tax bill.
Of course, if you think you're getting a refund but need more time, filing an extension is as simple as filling out the form.
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