Is the failure to file penaly dropped if an extesion is timely filed without any payment on taxes due.
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Confucius say:
He who sits on tack is better off. -
It is exactly what it says. It is an extension to file and not to pay taxes. So the penalty for filing is dropped but there will be interest on taxes dueOriginally posted by RLymanCEverybody should pay his income tax with a smile. I tried it, but they wanted cash -
Country Boy
An extension does not forgive the requirement to PAY your taxes, that's what prompted my question.Confucius say:
He who sits on tack is better off.Comment
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used to be
That used to be the problem. An extension was not valid unless 90% of the tax due was paid timely. I guess that was too unfair even for the IRS, because they changed it quite a few years ago.Comment
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Penalty
The big penalty is the failure to file and an extension takes care of that. The failure to pay penalty will rack up at a whopping .5%/month (that's .005 x tax due).I would put a favorite quote in here, but it would get me banned from the board.Comment
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