When taxpayers are faced with high income tax bills they can’t immediately pay in full, the first reaction is typically panic. There is a way to buy some time to gather the necessary documents needed to file a return, but it won’t give individuals extra time to pay their taxes. They’ll still be due on the appointed date set by the IRS.

Filing an extension will give taxpayers until Oct 15 to gather their documentation. Individuals will need to file a special form and they’ll be required to estimate their tax liability. There are some rules to which individuals must adhere and they’ll typically be subject to fines and fees if they don’t pay what they owe in full.

In many instances, it’s best to have the services of an income tax professional who knows the exact requirements, forms and deadlines, as there are a multitude of forms for different entities. People at any income level, along with businesses, can file an extension on their federal taxes and they can even do so if they file electronically.

If Oct. 15 falls on a Saturday, Sunday or holiday, the next business day will be considered the due date. An extension can also be obtained by paying all or part of the taxes owed by indicating the payment is for an extension. Using Direct Pay, the electronic federal tax payment system (EFTPS), or a debit or credit card offers several benefits.

EFTPS enables people to schedule payments up to 365 days in advance and payments can be made from any location. Payments can be rescheduled if necessary and tracked via email. Individuals can view 15 months of their payment history.

One of the reasons that hiring a tax professional is a good investment is that there may be special rules that apply to individuals living outside the U.S., those serving in a combat zone, or a hazardous duty location.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!


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