Even though we have 3 extra days to file our taxes this year, you might not feel like it’s enough. What if you aren’t ready to file? Can you file an extension? What IS an extension, anyway?
IRS Form 4868, Application for Automatic Extension of Time To File, gives you until October 17, 2011 to file. However, you still must pay the taxes that you owe, if any. The late payment penalty is usually ½ of 1% of any tax not paid by April 18, 2011. It is charged for each month or part of a month the tax is unpaid. The maximum penalty is 25%.
Alternatives to filing an extension:
If you owe money, it may just be best to file your tax return by April 18, 2011. If you cannot afford to pay, IRS can help you set up a payment plan. You’ll pay interest on the payments, but will not have any penalty for not filing taxes or filing late.
If you’re getting a refund, but just lack a piece of information (education expenses, child care, interest income), you can file a return by April 18, and later file a 1040X form, known as an amendment, to include the additional information. The Tax Center at Baker-Ripley Neighborhood Center will be open all summer and fall to help with these forms and issues, free of charge. Call 2-1-1 for those hours beginning in May.
Neighborhood Tax Centers 
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