THERE’S STILL THE WEEKEND!

Running behind on your tax returns this year?  If you’re still sorting out receipts and penciling in numbers,  it might be time to start thinking about an extension!

We say “might” because, this year, you still have the weekend to wrap things up. The Internal Revenue Service will accept 2015 returns filed or mailed through the end of the day on Monday, April  18.   (The extra time has to do with a holiday in Washington, D.C.)

If you still can’t make that deadline, it’s time to join the multitudes of taxpayers asking for an extension.

The extension adds another six months to the normal deadline, making it Oct. 17.  The IRS won’t ask you why you need it.  BUT – and it can be a big “but” – the IRSstill expects you to estimate income and pay any taxes by the normal deadline.

You accomplish that on Form 4868 or “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.” The extension generally is automatic. For a copy, see http://www.irs.gov/pub/irs-pdf/f4868.pdf.

The clock is ticking with this. Whether you’re sending it electronically or by “snail mail,” the extension form and any payments must be recorded or postmarked by the end of the day on April 18 to avoid penalties.

Now, from a technical standpoint, if you are absolutely certain that you will not owe any income taxes, you don’t need to file Form 4868. You can file your normal 1040 return later in order to capture your refund.

However, to be safe, we at EricJohn Ltd. advise filing the application for extension, whether or not you think you need it.  Miscalculations can happen, and there is a late filing penalty in addition to late payment penalties for any unpaid tax.

Finally, don’t forget any state taxes you owe.  In Minnesota, you don’t have to file an extension form. BUT – just as with the federal return – you must pay an estimate of tax due to avoid penalties. Minnesota Department of Revenue accepts tax payments through its Web site.

We at EricJohn Ltd. wish you easy and accurate filings for your 2015 filing season!