Tuesday, April 15, 2008

Use Form 4868 To Get A Tax Return Extension

File form 4868 for an automatic six month extension to file. However, form 4868 does not extend the time to pay taxes. If one expects to owe taxes, the payment needs to be sent in by April 15, 2008, or there may be penalties and interest added.

If one is expecting a refund, no payment needs to be submitted with form 4868. In addition, there is no penalty charged on a late tax return (i.e. the tax payer did not file form 4868) that has a refund. That's because penalties are only charged on the taxes owed.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial or tax advice. Please consult a professional advisor.

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