Since today is the due date for filing 2016 Form 1040, some taxpayers are going to find themselves worrying about filing their returns and paying the balance owed on 2016 taxes. Let’s attempt to reduce some of that stress.
First, if an individual files IRS Form 4868, he can receive an automatic extension of time to file his 2016 tax return until October 16, 2017. The filing of this Form 4868 provides the taxpayer an additional six months to file his 2016 tax return without incurring late filing penalties.
However, the IRS does not grant extensions of time to remit the taxes due. The remaining tax liability will be subject to late payment penalties if not paid by April 18. In other words, you can file your return after April 18 if an extension is timely filed, but all taxes are due April 18. If you cannot pay the full amount due, you should pay what you can afford to pay to keep IRS penalties and interest for late payment to a minimum.
If you are concerned about sending the IRS a check for the balance due, you should know that the IRS provides some payment options on its website. These include IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or by debit or credit card. These payment options will provide you with a confirmation. Keep the confirmation as proof of the date of payment.
If you want to discuss your business or personal tax planning, tax preparation and other financial concerns with an experienced tax professional, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.
