If you have not filed your income tax return for 2008 then, you already know you have missed the deadline. The federal income tax return deadline for 2008 was April 15, 2009.
Penalties
The IRS penalty for filing late on your 2008 federal income tax return is up to a rate of 5% of each month that youre late. If youre smart, you will file for an extension which will give you more time to complete your income tax return and prevent late filing penalties.
Extra Time
If you know you will not have your federal income tax return prepared by April 15 and you know you need more time, file for an extension, and you will have an extra six months to complete your tax return. Your new filing deadline will be October 15, 2009. Now heres the bad news.
If you know you owe the government money, you are still going to have to pay your taxes and include your payment with Form 4868 for the extension. If you do everything stated above then, you will be allowed the extension.
What if I Forgot to File an Extension?
Well, that all depends on if you owe money or if youre getting money back. If you happen to be expecting a refund, you will not be hit with a penalty for filing your income tax return late. It doesnt matter if you filed for an extension or not. Remember, the penalty for filing a late tax return is a percentage of what is owed to the IRS. If you dont owe anything then, even 100% of nothing is nothing. Of course its always better to file on time for a lot of reasons.
Late Filing, Late Payment Penalty
Even if you dont have the money you owe the IRS, you should still file by April 15. In this case, you will be made to pay a late payment fee and not a late filing fee. This will save you some money. The two fees are different. The late filing penalty is a percent of what is owed.
Questions, Questions
You may still have a lot of questions, for example, What if I dont have the money to pay? Can I pay with my credit card? Personally, I believe TurboTax Online is the best income tax return softwareavailable.
Tax experts are right at your finger tips prepared to answer all of your questions about the IRS penalty for late filing. They will get you the biggest refund you are entitled to and that is a guarantee.
