OMG! It’s almost April 15th. I’m not ready. What do I do now?   Relax. Breathe. Take inventory. Do you have all your W2 forms? Do you have all of your interest and dividend 1099 forms? Do you have your other income records? Gambling? Alimony? Hobby? Small Business? More?   What about deductions? Is this your challenge? Your papers are all over the place. Some are in this box over here, some are in that file over there. Oh, where IS that receipt? It’s not too late to start getting organized for THIS year. But what do you do now about last year’s information? It is the 2012 tax return we file in 2013. And the 2013 tax return will be filed in 2014.   The Key to Success Recordkeeping is the key to your success. This recordkeeping success helps you pay your lowest legal tax. AND this recordkeeping success helps you naturally and easily answer any question the IRS may ask at anytime. That’s what I call bullet-proofing your taxes.   Do you have income taxes withheld from your wages? Do you pay estimated taxes on your own small business profits and other income? Did you get a refund last year? Do you expect to have a refund this year too? Or are you afraid you are going to owe money? Again?   If you think you’ll never be ready to submit your income tax return by April 15th, then maybe an extension is just what your tax doctor ordered. But in order for this extension to be valid, you must have your taxes full paid by April 15th. You can send a payment with your automatic extension, Form 4868.   What About an Extension? The extension is a request for additional time to file. The extension does not give you additional time to pay your taxes. When you file this form, it automatically gives you up to 6 additional months to file your return. The April 15th due date magically becomes October 15th.   If when you compete your return you find you owe additional tax, the extension becomes invalid, or not valid. IRS will assess a late-payment penalty and they will assess interest from the April 15th due date of the return until the taxes are paid in full. The tax code mandates the interest and the IRS has no choice but to assess it.   If you do owe additional taxes, pay them as soon as you can. If you need one, the IRS may allow you a payment plan. As long as you can pay your taxes within 5 years, and you can pay the fee to set up this payment plan, they are happy to take your monthly payments. DO NOT BE LATE with your monthly payment.   My IRS experience is in the audit arena. I am not an expert in IRS Collection. I have colleagues who are former IRS Collection Officers and know exactly how to help you. If that is where you find yourself, I am happy to connect you with someone who can help you. Just let me know how I can help you.   Always to your lowest legal tax,   Nellie T Williams, Enrolled Agent