As the deadline for filing tax return is closing in, taxpayers are getting anxious to meet the deadline. But there are few who still are in bliss as they have filed for an extension. According to the IRS around nine million American have applied for an extension in recent years. The story seems to be continued this year too.

The most general plea has been taken by extension filers that they are missing the required documents. Even if you are not paying taxes and filing for an extension, you don’t have to relax. Simply because you are still liable to fill the form 4868, where you are required to estimate your tax liability for the year 2005 and render it to the IRS.

But despite of the fact that you owe taxes and you have not filed for an extension, be ready to face the penalty. The penalty may range from five percent per month on the amount due, to 25 percent.


The taxpayers who file their return on time or request an extension but are unable to pay usually face a penalty of 0.25 percent. Other than this you can pay your taxes in installments too. And for this you have to fill the form 9465. Installment Agreement Request gets approval easily if the amount is $25,000 or less.

Via: Cleveland.com