Continuing our effort to provide you with valuable tax information, we will periodically update this page with useful tips and information on issues that you commonly deal with. Tax Deadline Nears, But Extensions Are Easily Available

With April 15 looming on the horizon, you may have come to the realization that you (or your accountant) simply can't get all your federal income tax forms accurately filed by that critical date.

If you're only going to be one or two days late, don't worry. The Internal Revenue Service (IRS) has historically permitted a minimal delay of a day or so without applying any penalties.

Also, if you're a member of the Armed Services currently serving in an active combat zone (or serving in support of combat operations), you'll be given an automatic 180-day extension to file. Taxpayers covered by these relief provisions should put the words "COMBAT ZONE" and their deployment date in red at the top of their tax returns when they do file. Additionally, taxpayers who receive a notice from the IRS regarding a collection or examination matter should return the notice to the IRS with the words "COMBAT ZONE" and the deployment date in red at the top of the notice, as well as put "COMBAT ZONE" on the envelope so the IRS can suspend the action.

For everybody else, it's not that automatic, but it is easy. If you need more time than that to satisfy your federal income tax obligations, you can get an extra six months to file by sending Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, to the IRS by April 15. The extended deadline will be October 15.

You don't need to give any reason to the IRS when filing for this extension. Aside from running out of time, some common reasons for filing late are to take advantage of a later contribution to a Keogh plan or to allow more time to set up an SEP-IRA account--and you'll have up to October 15 to take either of these actions.

To take advantage of the extended deadline, you must estimate your total tax liability based on the information you have when requesting the extension. If the IRS later finds this estimate to be unreasonable, your extension will be void and late filing penalties will be applied retroactively.

A filing extension does not give you more time to pay any taxes owed. You should pay any projected balance due with the Form 4868, but if you can't pay the full amount at that time (or you don't know exactly how much you will owe), you can still get the extension. Interest and penalty charges apply to any tax not paid by April 15.

Stay tuned to CompleteTax for the latest information and changes regarding the 2007 tax filing season!

Tax Guide 2009

How Long Must Your Records Be Kept
After filing your return, it is wise to keep certain records safely stored in case they are needed in the future.   To learn which records and for how long, please read How Long Must Your Records Be Kept?

Phaseout of Exemptions for High-Income Families
Once your adjusted gross income exceeds a certain amount, tax law requires some of your tax breaks to be reduced or taken away.   For more on this topic, please review Phaseout of Exemptions for High-Income Families.

Lump-Sum Distributions
If you cash out funds from a qualified retirement plan, you may be subject to a series of complicated tax rules.   For more on this subject, please review Lump-Sum Distributions.

What To Expect If You Are Audited
Audits are rare, but they do happen.   To learn more about the process the IRS follows, please read What To Expect If You Are Audited.

Tax News

Last-Minute Tax Filing Tips

If you're rushing to complete your return before the deadline, don't forget to check these helpful hints.    For further details, please read Last-Minute Tax Filing Tips.

Mass Mailing of First Rebate Notices Is Underway

The IRS has sent the first in a series of letters to help taxpayers understand the process for receiving a tax rebate payment this summer.    To find out more, please read Mass Mailing of First Rebate Notices Is Underway.

Social Security Numbers Determine Order of Rebate Check Deliveries

We know a little more about the order in which rebate checks will be sent to taxpayers this summer--and some joint filers may be able to move up in line.    For more information, please read Social Security Numbers Determine Order of Rebate Check Deliveries.

IRS National Taxpayer Advocate Cites Concerns

IRS National Taxpayer Advocate Nina Olson has delivered her annual report to Congress and she is concerned about three particular federal taxation issues: the deleterious impact of late-year tax law changes, taxpayer confusion over the rule governing cancellation of debt income, and the lending practice of having taxpayers sign blank requests for tax return transcripts.    For more information on this important topic, please read IRS National Taxpayer Advocate Cites Concerns .


Tax News Archive

For more stories and features on federal, state and payroll tax issues and how they may affect you, read the listing of articles in the archive.