If you requested an extra six-month extension in April to file your 2018 personal income tax return, that deadline to file is coming up this week on Tuesday, October 15th.
If you are an employer that makes contributions into employee Simplified Employee Pension IRA accounts, October 15th is also the six-month extension deadline to make those deposits.
If you miss the 6 month extension date (10/15) you will have failure to file penalties which can add up to 25% of the tax due. If you miss the 10/15 deadline you will have a failure to file penalty of 5% of your balance due for every month (or part of a month) added to your account until you file your tax return.
If you can’t pay your taxes the IRS offers installment agreements that lets you pay a set amount per month until the tax is paid. The IRS recommends you pay your tax due with a credit card or a loan because most of the time the interest on the credit card or loan will be lower than the combined penalties and fees you’ll pay the IRS.
If you owe a large amount and have no way to pay through installment agreements, you may be able to work out an offer in compromise and settle for less than the full amount.