Howard Kass, a CPA in the Cleveland accounting firm of Zinner and Co. writes about filing for an extension on your 2006 taxes, as the April 16th deadline approaches:
does one do if they will be unable to complete their return by the due date of
4/17? Quite simply, file for an extension.
may file for extensions of time to file their tax returns using form
4868. Taxpayers should be aware that filing this form automatically
extends the time for filing their tax return, but not for paying the tax
due. Taxpayers should pay what they believe their remaining tax
liability will be with the extension form or, if they e-file their extension,
with a payment voucher, form 1040-V.
addition to extending one’s federal return, filing form 4868 will extend the
due date for filing one’s Ohio return.However,
as with the federal return, one must pay what they believe they will have due
to the state. This payment is made on form 40P.
Finally,Ohio’s various cities have varying requirements for
filing extensions. In fact, most Ohioans are probably unaware that while
there are many cities in Ohio with due dates on April
17, there are also many cities with due dates of 4/16, as well as 4/15!
The following link takes you to an article on the website of the Ohio Society
of CPAs explaining this phenomenon. CPA Link
You should contact your city to find out their extension filing
Contact me BEFORE you buy a franchise
happens if you can’t pay your balance due? Generally the unpaid tax will be
subject to late payment penalties and interest. Be advised, though, that,
even if you can’t pay your balance due, you should file your return or an
extension timely. The late filing penalty is much more severe than the
late payment penalty! In addition, the IRS has a procedure through which
taxpayers can apply for installment agreements to pay their balances due.
Be advised that late payment interest and penalties would continue to apply and
the IRS charges a fee for considering your installment payment request.
In addition, the state and cities also charge late filing and payment penalties
and interest. Obviously, it is in one’s best interest to pay their full
tax when due and to file their returns timely.
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