March 15, 2005

Not Enough Time - Not Enough Money?
Tips on dealing with the April 15th deadline

Surprise! 30 days from today is April 15th - Income Tax Filing Deadline!

Unless you've been living under a rock, you already know that, right?

Starting to panic? If so, it is probably for one of two reasons:

(a) Not enough TIME (you 'can't possibly' get everything pulled together by April 15th)

(b) Not enough MONEY (you 'just don't have' enough money to pay the amount of taxes you will owe).

Want some good news on both counts???

NOT ENOUGH TIME?

If you need more TIME, submit IRS Form 4868, 'Automatic Extension of Time to File.' As the title implies, it is automatic - i.e., it does not require IRS approval. This form gives you an extra four months, so your new deadline will be August 15, 2005.

Note: This is NOT an extension of time to PAY, just an extension of time to FILE. In order to avoid 'under-payment penalties,' you must, by April 15, pay the difference between the total taxes you've already paid through payroll withholding and/or quarterly self-employment tax payments, and either:
1. The amount of taxes you ended up paying for 2003, OR
2. 90% of the taxes you will owe for 2004, whichever is LOWER.

NOT ENOUGH MONEY?

If you're going to owe a bunch of money to Uncle Sam and Aunt IRiS for your 2004 taxes, there is a relatively painless (and relatively unknown) solution.

Filing IRS Form 1127, 'Application for Extension of Time to PAY,' can get you an additional six months to pay the piper. You'll pay them interest (but at the modest level of 6% APR), but they can't slap you with any penalties!

Unlike Form 4868, however, the Form 1127 is not automatic. It requires IRS approval, so don't wait until the very last minute to submit it.

WANT THE FORMS?

I have posted BOTH Form 4868 and Form 1127 for you on my web site. (Hey, am I a good friend, or what?)

Go to www.HomeBusinessTaxSavings.com (you already knew that, right?), and click on the button on the left, labeled 'Valuable Links and Other Free Stuff.' Then click on the line for 'IRS Forms and Publications.'

That will take you to a page with an annoying (but attention-getting) red blinking button at the top, labeled 'HOT!' Both forms are right there, just beneath the flasher.

STAY TUNED.
This is the first, in a series of 30 DAILY 'Tax Tips You Can Bank On.' You don't need to read them all, but the one you miss is the one that will reveal a brand new, IRS-approved, $5,000 tax savings strategy. (Note for IRS agents reading this: Relax, I'm just kidding!)

Okay, there are TWO 'Tax Tips You Can Bank On. More tomorrow.

P.S. - Don't risk losing your audit-proofing tax records and irreplaceable business files stored on your C-drive when (that's 'when,' NOT 'IF') your hard-drive crashes. For less than 64-cents a day, you can have every file, program and setting, backed-up off-site, automatically, after you go to bed. My own hard drive crashed a few months ago, and 'Access Genie' had me totally restored within about 10 minutes! No kidding! To get details, go to www.HomeBusinessTaxSavings.com, click on 'Products and Services,' and then scroll down to the very bottom of that page.

P.P.S. - Need a tax preparer who is a small-business tax-law expert? Go to www.HomeBusinessTaxSavings.com, then click on the button on the left, labeled: 'Need Tax Help?'
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