DREAD THE APRIL 15 DEADLINE? CHANGE IT TO AUG. 15 BY FILING AN EXTENSION
DREAD THE APRIL 15 DEADLINE?
CHANGE IT TO AUG. 15 BY FILING AN EXTENSION
NEW YORK, Nov. 26 /PRNewswire/ -- With the April 15 deadline less than six months away, the pressure will soon be on to complete and file tax returns. Some taxpayers will postpone the inevitable pressure by filing an Application for Automatic Extension of Time to File U.S. Individual Tax Return (Form 4868) and receiving an automatic four-month extension.
According to tax professionals at KPMG Peat Marwick, no reason is necessary in order to file an extension; however, it must be filed on or before April 15 at your IRS office. The application must also show a good faith estimate of the tax liability for 1991 and include payment of any balance owed.
An extension to file return does not extend the time for payment of taxes. The payment does not have to be accurate to the penny, but must come within 90 percent of the total due to automatically avoid a late payment penalty. If the tax is underestimated, but within the 90 percent range, only interest will be charged. For amounts due with the return in excess of the allowed 10 percent, a penalty of one-half percent per month will be added to the interest, unless reasonable cause can be shown for the late payment.
Filing later does not increase the danger of an IRS audit. However, if due a refund, receipt of that refund will be delayed.
KPMG Peat Marwick provides accounting, auditing, tax and management consulting services to leading businesses, governmental, private institutions, and individuals through 135 offices in the United States. It is the U.S. practice of KPMG, which has operations in more than 120 countries and posted 1990 revenues of $5.4 billion.
/CONTACT: Barbara Kraft of KPMG Peat Marwick, 201-307-7286/ CO: KPMG Peat Marwick ST: New York IN: FIN SU: FC-SH -- NY065 -- 7431 11/26/91 15:23 EST