Tax day is here and for some it is a day that’s not welcomed. If you can’t pay what you owe, don’t panic, there are some solutions that can at least buy you some time.
“I think it’s something that people just don’t like to deal with. It’s not a fun, feel good thing to do. Your always worried that you are going to owe or get back and putting it off is so much easier,” said Peggy Stone who was filing taxes on Wednesday.
This year, the pain for many comes from having to find the cash to pay what they owe.
“We are seeing a lot of unemployed people, a lot of foreclosures…it’s been kind of a sad tax season,” said Joanne Karwacki, an H&R Block Tax Advisor.
You must file your taxes today or file for an extension to escape facing a penalty. Filing for an extension will buy you six-months, until October 15th, to get all your documents together.
But this doesn’t mean you don’t have to pay. It just helps buy you some time. If you still need help, you can apply for an extension and a four-month payment plan. This, however, will also come with an added fee and interest.
“You’ve got to file that’s the thing. You have to come in. If you don’t file today and you don’t file an extension, starting tomorrow it’s five percent failure to file on time and a one percent failure to pay on time,” explained Robert Quesada, manager at Liberty Tax.
The message is, file even if you can’t pay. The worst thing to do is ignore the IRS. Those who simply neglect to file a tax return could risk big penalties in the future.
The majority of the tax services out there, like H&R Block and Liberty Tax, are working on extended hours and most won’t close until midnight.
However, if you planned on dropping your taxes in the mail, you’re too late. Post offices all around our region closed at 5:00 pm, as usual. The USPS said so many people file online nowadays, the demand to stay open late just isn’t there.