Everyone is aware that you can extend the time to file your return with IRS Form 4868 for six months. This is an automatic extension and it also extends the time to file your Arizona state tax return if you live in the greater Phoenix AZ area.
You can also extend the time to pay your taxes but you must show that you would suffer an “undue hardship.” If you are considering requesting an extension of time to pay your taxes, you probably need professional assistance. Even if you are approved to pay your taxes later, you will still have to pay the going IRS interest rate. This interest rate fluctuates every quarter.
Remember that the failure to file penalty is ten times worse than the failure to pay penalty. Never if at all possible file late. It may not be possible to pay your taxes but most of the time you can file by the due date. Many taxpayers are mistaken to wait until they can pay their taxes before filing them. The failure to file penalty is up to 25% for the first five months you miss a filing deadline.
Call Scott Allen E.A. of Tax Debt Advisors, Inc. for a free initial Phoenix Arizona consultation if you are considering requesting an extension to pay your taxes. Scott can be reached at 480-926-9300 to schedule an appointment in the Phoenix AZ area.
– Scott Allen – info@taxdebtadvisors.com