Version 9
The Tax Day Cometh!
Since April 15 falls on a Sunday, tax returns need to be postmarked no later than midnight on Monday, April 16, 2001. Or do they? Taxpayers are allowed to file for an automatic four-month extension (until August 15, 2001). Filing IRS Form 4868, available on-line at www.irs.ustreas.gov/prod/forms_pubs, by April 16 will do the trick. This will not get you completely off the hook, though. Taxpayers must pay any taxes owed when the extension is filed or suffer possible penalties and interest.
Don't have the cash to pay on April 16? More and more taxpayers are using plastic to pay Uncle Sam. The IRS estimates that approximately 6 % of taxpayers will pay using a credit card this year.
Maxed out on your credit cards? Pay what you can with your return or extension form by April 16 and request an installment agreement by filing Form 9465. Installment agreements are not cheap. The IRS will charge 8% interest compounded daily on the amount not paid by April 16. That is a much better rate than you will get if you fail to file a return or an extension by the due date. In those cases, the IRS will penalize you
5% per month on the owed amount up to a maximum of 25 % of what you owe. In addition, they will charge 9 % interest compounded daily, on the unpaid taxes.
Interested in filing your tax return on-line?
Try www.quicken.com/taxes and follow the links to the TurboTax on-line page. For a handy list of general tax sites go to www.taxsites.com. You can download all of the IRS tax forms plus state tax forms from the IRS site. Most tax preparers will not take on new clients this late and will probably file an extension for you anyway.
Gary L. Bridges, CPA
Director, SBDCNET
For additional tax and accounting tips and links see: http://sbdcnet.org/SBIC/tax.php
SBDC Business Advisor: Would you like to submit your research request online? Try our online form: http://sbdcnet.utsa.edu/requestform.asp
Contact Us
SBDCNET
UTSA Institute for Economic Development
University of Texas at San Antonio
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San Antonio, TX 78207
http://sbdcnet.org/
sbdcnet@utsa.edu
800.689.1912
SBDCNet Team
Gloria Allen
Carolyn Ellis
Peter Morales
Sarah Barrette
Paula Fantegrossi
Guillermo Barreto-Vega
Perry Byers
Linda Hernandez
Jane Nolasco
Judith Johnson
J. Eric Lomeli
Juan Cueva
Armida Hernandez
Co-Editors: Carolyn Ellis & Judith Johnson
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This U.S. Small Business Administration (SBA) Grant is funded by the SBA. SBAs funding is not an endorsement of any products, opinions, or services. All SBA funded programs are extended to the public on a nondiscriminatory basis.
