Oct 08, 2009

Final Deadline for Filing 2008 Income Tax Returns

Business owners who got extensions last April for their 2008 income tax returns must now face the music. October 15th is the final deadline for filing 2008 income tax returns. Don't have all the money you owe? It doesn't matter--business owners should file a return by this deadline even if they can't pay what they owe to the IRS.

It's always a good idea to make some effort to pay when you file your tax return, even if it's not the full amount you owe. First of all, this will reduce the penalty and interest charges you will incur for late payment. It also puts you in a better position to negotiate with the IRS for additional time. Depending on your circumstances, you may be able to reach an agreement with the IRS to "full pay" within 60 or 120 days--meaning you will come up with all the money you owe the IRS within a 60 to 120 day timeframe. This arrangement buys you a little time if that's all you need and the charges, penalties, and interest you incur during this period will be less than they would be if you have to do a longer term installment agreement.

If you can't do a full pay agreement and you still owe the IRS money, you will probably need to enter into an installment agreement. If you owe the IRS less than $25,000 in taxes, penalties, and interest, you can complete an Online Payment Agreement (OPA) on the IRS's website. Alternatively, you can download Form 9465 from the IRS website and mail it in. If you owe more than $25,000 in taxes, penalties, and interest, you made need to complete a Collection Information Statement, Form 433F, in addition to the installment agreement. This form requests some financial information to assist the IRS in coming up with a payment plan.

For more information on your late payment options, see "Filing Late and/or Paying Late" on the IRS website.