Timely Tips for Tardy Taxpayers

Elaine Schumacher, Staff Reporter

Elaine_Schumacher@csumb.edu

April 17, 2008

For students, tax season comes amidst busy

school weeks, spring break and preparation

for finals. April 15 was the deadline for

filing federal and state income taxes to the

Internal Revenue Service (IRS).

Taxpayers who missed the deadline should

file all returns, regardless of whether or not

full payment can be made. Depending on

the individual’s circumstances, it is possible

to qualify to be put on a payment plan to

pay the unpaid taxes.

“If you owe money to the IRS, pay

it as soon as possible because there

is a penalty for filing late and interest

may be added to the unpaid balance,

which is compounded daily,” said Susan

Wu of H&R Block, a leading U.S. tax

preparation company. “There is also the

possibility that the IRS could put a lean

on your assets,” added Wu.

The practice of the IRS has been to not

recommend criminal prosecution for failure

to file tax returns on time, provided that

they voluntarily file, or make arrangements

to file, before being notified that they are

under criminal investigation. As part of

its long-term plan to improve voluntary

tax compliance, the goal of the IRS is to

get people back into the system and not

prosecute people who made the mistake of

filing late.

“If you think that you may be late, file

the 4868 extension form by the due date

of your return, usually April 15,” said

Marti Wilson, Certified Public Accountant,

(CPA) Napa, California. If the form is not

postmarked on time, the IRS may deny

the extension and ask that you file your

return within a specified number of days.

“Form 4868 gives an automatic six month

extension of time to file the return, it does

not extend the time you have to pay your

taxes,” said Wilson.

“If a taxpayer requested an extension

by April 15, they now have until Oct. 15

to file, but will be charged eight percent

interest on the amount owed,” said

Charles Boughton, Master in Business

Administration (MBA).

“If a student worked a part time job and

received a W2 form, they are required to file

income tax,” Boughton continued. In the

event that a taxpayer missed the deadline

for requesting an extension, the penalty is

25 percent of the amount owed.

“If a student did not work during the

year, they are not required to file and if the

taxpayer is due a refund, they have up to

three years to file, but if a taxpayer fails

to file within three years, they lose the

refund,” added Boughton.

For more information on how to file late

taxes, visit www.irs.gov.media/resource

Free File Taxes at:

http://www.irs.gov/efile/article/0,,id=118986,00.html

Already filed? Find the status of your refund:

http://www.irs.gov/individuals/article/0,,id=96596,00.html

For more information on filing taxes late and getting an extension visit:

http://www.irs.gov/newsroom/article/0,,id=181400,00.html

Information on the Economic Stimulus Package:

http://www.irs.gov/newsroom/article/0,,id=177937,00.html

Information on students and the IRS:

http://www.students.gov/STUGOVWebApp/index.jsp