Tax Deadline Alert! Tips for the Upcoming April 18 Deadline

Year after year, a lot of us dread April 15. This usually means that we have to deal with gathering year-end forms, like the popular W2s, various 1099s, and, for some of us, crumpled receipts to claim as deductions. Well, luckily for us this year, because of Emancipation Day in Washington, D.C., we get an extra weekend in April to do (and file) our taxes. (Emancipation Day is the day President Abraham Lincoln signed into law a bill abolishing slavery in Washington, D.C. which is usually is celebrated on April 16). So the official due date for filing 2015 individual income tax is April 18. Most states also comply with this deadline, but if you live in Maine or Massachusetts, you get one more day to file your state tax return on April 19 because of Patriots' Day (celebrated every third Monday of April).

If you are bogged down by this task, and think you can't file your taxes by these dates, here are

some tips and reminders:

1) You can always file an extension to file your taxes by submitting federal Form 4868, Application

for Automatic Extension of Time to File U.S. Individual Income Tax Return. This gives you six (6)

months of additional time to prepare your taxes, and this form can be filed electronically or

manually, just make sure to do this by April 18. When this is filed, usually the state tax returns are

automatically extended as well and there is no need to file a separate state tax extensions. Please

check your own state's requirements when you file an extension.

2) Even though you can extend filing your returns, paying what you owe to Uncle Sam is NOT

extended. Have an idea of what your 2015 tax returns look like and if you owe, pay as much as

you can by April 18. Remember, if you end up owing by the time you actually file your taxes,

interest on the balance will run from when it was originally due --­­ April 18.

3) If you will not be filing by April 18 because you can't pay what you owe, try to get a loan or use

a credit card to pay your tax. The interest and fees charged by a bank or credit card company

may be less than IRS interest and penalties. For credit card options, see www.IRS.gov.

4) If you owe $50,000 or less in combined income tax, penalties and interest, you can enter into

an installment agreement plan with the IRS by using the Online Payment Agreement tool. You

can also file Form 9465 Installment Agreement Request with your tax return. If you can, set up a

direct debit agreement with IRS so that you won’t have to write a check and mail it on time each

month.

5) Never ignore a tax bill. Contact the IRS immediately, as your account may go into collection,

which means more trouble for you. If you are experiencing a financial hardship, the IRS will be

willing to work with you.

6) If you did not file a tax return for 2012, you may be one of nearly one million taxpayers who

may be due a refund from that year. If you are, you must claim your share of almost $950 million

by April 18. To claim your refund, you must file a 2012 federal income tax return. For more

information, visit www.IRS.gov.

The most important thing to remember is to file your taxes on time, as penalties and interest can

be severe. Don't wait until April 18 to talk to your tax preparer!

We, at CPC Financial Services, Inc., can guide you through the tax filing and extension

process. We can also assist in setting up installment payment plans with the IRS. If you have any

questions, email me at erika@cpcfinserv.com.