Even if a taxpayer doesn't have enough money to pay their taxes, they should still file their returns the best that they know how on or before April 15th. according to the 1040 instructions. If they do, they will avoid further penalties and fees for for failure to file. Even if you cannot pay your taxes on the due date it is better to file then to just do nothing. There are a number of reasons why. First of all, it is important to know that when you file your taxes in error, you can always have an accountant or other tax professional file an amended return at some future time to correct any mistakes that you made when you filed in haste to beat the deadline. This will protect your IRS refund if you are due one.
The IRS deadline to file your IRS 1040 form is tomorrow April 15, 2009. Tax day as some call it is a source of intense pressure and anxiety for many. If you simply cannot pay, then you should file anyway because the IRS might help to set up an installment agreement for you if your situation warrants. Installments can be arranged and spread out payments allow taxpayers to pay down the tax debt over time. According to IRS.gov, the IRS will consider an offer in compromise in certain cases if they believe that this is an appropriate solution for you.
The IRS tax policy is set up to help get people back into the system pursuant to a long-term plan to improve voluntary tax compliance. The IRS wants to get as many people back into the system as they can.
File An Extension
If you must, then file IRS Form 4868 which is a request for an extention. This buys you time. The extension gets you a six-month reprieve. The IRS has a new policy that states for the first time, that you can be granted an automatic six-month extension to file your taxes. It is very easy to complete. All the form requires is your name, address and Social Security number. It asks you to estimate your tax liability and send any balance due. If you make this payment and cover at least 90% of your real liability, that's all it takes! You can pick this form up at any IRS office or order it at 800-TAX-FORM (800-829-3676). You may even be able to file for an extension over the phone, but you will need last years return and this phone number: 1-888-796-1074.
If you simply can't pay, then file IRS 1040 before midnight on April 15th, doing the best that you can with it and try to send something in. If you cannot do even that then attach a handwritten letter explaining so. There will be some information in your 1040 tax instruction booklet that comes with your 1040 forms providing help and information on exactly how to handle this. So, take advantage of this!
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