Tax Procrastinators Get Lucky Break This Year
DENVER (CBS4) – Procrastinators caught a lucky break this year — the deadline to file taxes was pushed back a few days for a holiday in Washington, D.C.
The deadline is Monday at midnight, but for some, filing an extension might be the best option.
“I think what we’re seeing is a lot of people don’t know they have the extra days,” Steve McDermott with Liberty Tax Service said.
The extra days were the result of the Emancipation holiday in Washington, D.C. Despite the extra time, some 10 million Americans will file for an extension.
“I can’t explain it either to be honest. I’m filing an extension too,” McDermott said.
McDermott says even those who do file an extension, they still have to pay their taxes on time. The extension only gives extra time to file the paperwork. Pay late and they will pay a penalty.
“You’ll still have interest and penalties, so that’s why you want to make an estimated payment,” McDermott said.
He says he’s seen many struggle to make any payment at all over the last few years due to the economy, but now people are doing what they can to catch up.
“I think I’m seeing a few more people this year that feel like they’re trying to get back on their feet, they’ve already been knocked down.”
The IRS does have an offer-in-compromise program that will work with taxpayers who are going through a rough financial streak. McDermott says the best thing is to be upfront and honest with the IRS.
“Let them know that you’re filing, but you can’t pay it all now and you generally have 60 months to pay off a debt.”
There is also the option to pay taxes with a credit card.