April 15 is Coming

Most of us know that our personal income tax returns are due on April 15, unless properly extended.  The IRS gives each of us an opportunity to get an automatic 6 month extension on FILING an income tax return by filing Form 4868 by midnight on April 15.  This extension does not mean that you can postpone PAYMENT of any tax that is owed. 

If you owe income tax, you are required to submit payment with your income tax return or your application for extension by April 15.  Failing to pay your tax on-time would result in a penalties and interest for failing to pay.

You should also know that if you are required to gift tax return for large gifts made in 2009, that return is also due by April 15.  If you extend your income tax return, your gift tax return is automatically extended as well.  Of course, if you owe gift tax, it must be submitted on-time, just like your income tax return.

Most accountants are advising their clients to collect whatever information that they have in order to estimate any tax that is owed.  If you use an accountant and have not yet filed your tax return, you should forward your tax forms (W-2s, 1099s, etc.) as soon as possible so that your return can be extended and your tax estimated.

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