So for those of you still waiting to file, make a
payment or with other questions, a few answers:
DO I HAVE TO?
Yes. In most cases, you must file and pay your
taxes by July 15.
Taxpayers who need more time can request an
extension on the IRS website. That will give them
until Oct. 15 to file. However, an extension to
file does not mean added time to pay. So those
planning on filing later should estimate what
they owe and make that payment by July 15.
I CAN’T PAY NOW, WHAT DO I DO?
Go ahead and file your taxes even if you
cannot pay.
The IRS is willing to set up payment plans or make
other arrangements with taxpayers who cannot
pay in full. Many of those can be set up online.
And the penalty for failure to file will be much
more expensive than the failure to pay, says Kathy
Pickering, chief tax officer at H&R Block.
WHAT ABOUT REFUNDS?
The IRS is still processing and issuing refunds,
most within 21 days.
Those getting refunds will be paid interest,
dating back to April 15, if they file on time.
The interest rate is 5% per year through June
- Starting July 1, it drops to 3% per year. The
interest is compounded daily for refunds. Any
refund issued after July 1 will get a blended rate.
An animated look at the updated W-4 tax form
and steps for withholding the right amount of
income tax.