Crunch Time

And we're not talking taco chips

By Kaye A. Thomas
Posted April 14, 2008

Tips for last minute filers.

I'll skip the jokes about procrastination and get straight to the point. If you haven't filed yet, here are your choices:

File electronically

This is your best choice, especially if you qualify for a stimulus check. The Treasury says the first batch of stimulus payments will go to people whose returns are processed by April 15. At this point, returns filed by mail won't meet that deadline, even though they meet the general deadline for filing, and that could mean a lengthy delay in getting your stimulus check.

Returns filed electronically also have far fewer errors than paper returns. They save money for the IRS, and they save money for you.

At a minimum you can save the cost of a postage stamp, because completely free return preparation and electronic filing is available from TaxACT, one of the leading providers of tax software. No age limits, no income limits, and no limits on the complexity of returns.

File a paper return

Not as good as filing electronically, but still better than not filing. If you need software to help you prepare the return, you can download it free from TaxACT. Just choose their software download instead of online return preparation. If you don't need the software but want an easy way to get the IRS forms and publications you need, visit the Fairmark Fast Form Finder. If it makes you feel more comfortable you can go to the IRS website, but most people will find our way faster.

For proof of filing at the post office you would have to use certified mail and get a receipt with a legible date stamp. You don't have to get the return postcard, but without a receipt you're exposed to the risk that the return gets delayed in the mail without a legible cancellation mark. A postage meter does not count as proof of the date of mailing because it's possible to meter an envelope one day and mail it a week later.

File an extension form

If you can't file your return by the due date, file an extension form. You have to estimate how much tax you'll owe and send the money with the extension form, because this is an extension of time to file, not an extension of time to pay.

form 4868 (pdf): Form 4868

If you can't pay

Do your best to come up with any money you owe. The IRS charges interest on unpaid tax. On top of that, there's a penalty equal to half of one percent for each month or part of a month the tax remains unpaid. You can avoid the penalty if you've paid at least 90%, including withholding, estimated payments, and the amount paid with the extension form.

If you can't pay, file anyway. The penalty for failure to file is ten times as high as the penalty for failure to pay: five percent for each month or part of a month the return remains unfiled, to a maximum penalty of 25%.