If you find yourself, despite rushing around, running behind come the April deadline, relax. All tax filers can get an automatic 6-month extension by filing IRS Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, by April 18th. Remember the extension of time to file is not an extension of time to pay. Pay the tax as quickly as possible so you can keep late payment penalties and interest to a minimum.
If you can’t pay the full amount of tax you owe, pay as much as you can. However, there are underpayment penalties in addition to late penalties, so you will only make matters worse if you fail to send in your return at all. If you can make monthly payments on the tax that you owe, the IRS will consider an application for an installment payment plan. Simply complete IRS Form 9465, Installment Agreement Request, and include it with your return. In most cases, the IRS will accept the application, and you can make payments over time.
Sole proprietors doing their own taxes can find help from a number of sources, including the NASE’s Tax Resource Center. The IRS also offers a website (http://www.irs.gov/) and toll-free help line, 1-800-829-1040, for your tax questions.