Taxes: Of life’s two certainties, the only one for which you can get an automatic extension. ~Author Unknown
It’s true, you can get an automatic extension of time to file your income tax returns each year. However, when you file that extension, it does not give you more time to pay your taxes. Many taxpayers (and many of my clients) have gotten themselves into trouble in the past because they didn’t pay their taxes that they were going to owe.
In the past we have discussed on this blog how you can save yourself a lot of unnecessary penalties just by filing your tax returns on time. You will not be receive a late filing penalty if you file an extension so long as you file the return before the extension expires. Where you can save yourself a late payment penalty from the IRS is by paying the tax that you will owe by April 15 each year regardless of whether you are going to file an extension.
If you find that you will not be able to afford the taxes you will owe, you will need to work toward some sort of resolution. The IRS has greater collection powers than any other creditor you will ever encounter. Therefore, I would encourage you not to "stick your head in the sand" and pray that the problem goes away, but rather you should actively try to resolve your case before the IRS has to actively collect the money you owe them through not-so-good ways like a wage levy.
This blog discusses many different alternatives and ways you can resolve your case with the IRS. Please let me know if you have specific questions you would like to see answered on this blog. Also, if you would like to discuss your specific case and how my firm could help you, I would encourage you to fill out the short contact form and I will contact you about what we can do to help.