If you owe taxes to the IRS but can’t afford to pay the total owed in April, you can file for an extension that can buy you up to six months. When you file an extension, you still have to pay the tax money owed, but you have a longer period of time to pay it. That means you can make payments on the total balance or save up the money and pay it all at once. If you have filed an extension, here is what you should do.
Make Sure Your Extension Request Was Approved
You should receive a letter of notification from the IRS that tells you if your extension request has been approved. If you have waited several weeks and have not received notification, you may want to call the IRS or visit the website and send an email. You can also check the status of your request online.
Start Saving Or Making Payments
If you want to avoid penalties and pay your taxes on time, you need to start saving your money to pay the balance owed or start making payments to the IRS. You can make payment arrangements with the IRS ahead of time and even file an estimated payment with the before you file your taxes and find out the exact amount you owe.
File Your Taxes
Even though you have filed an extension, you still have to file your taxes. You have until October 15 to file them. You can do this online or hire an accountant or tax preparer to file them for you. Do not forget to file your taxes or you could end up getting in trouble with the IRS and owing more money with added fees and penalties.
Filing a tax extension may be necessary and convenient, but you can’t forget to file your taxes in October and you still have to make sure your tax payment are sent to the IRS on time.