TERRE HAUTE, Ind. (WTHI) - Everyone's tax situation is different. Now that the deadline is quickly approaching, some people are realizing they may need to file an extension.
News 10 spoke to Tax Masters in Terre Haute about what to do if you need a little bit longer to file, or more time to come up with the money you owe. Thomas Jeffers is the President of Tax Masters. Tuesday, he helped many customers, including Kevin Gardner and his dad.
Gardner says, "Actually I’ve already had my taxes done. I'm here with my father to get his done, and I’ve got some issues with our software accounting program and Tommy helps me with that."
Whether you're having a computer glitch, a challenging tax return, or just running late to file, an extension may be in your future.
Gardner says, "What I would do is come to Tommy here at Tax Masters and have them file it for me. I've had to do it in the past, it's been years ago."
It's a process that Jeffers says is easier than many think.
He says, "If you use somebody to do your tax return, you can always contact them and they can file an extension for you. You can also file an extension by yourself on the IRS Free File. It's just right on IRS.gov. You can type in 'file an extension' and you can do one online."
Jeffers says that if you haven't filed your taxes yet, you're not alone. He says it's important that if you think you need help, to go ahead and reach out to a tax professional. It's better than missing the deadline and owing a lot of money in fees.
Jeffers says, "If someone owes money after the deadline and did not file an extension, there is an additional penalty that is added to the balance that is a very expensive one that we don't like."
Jeffers says there are two main types of tax penalties. The first is a 'failure to pay penalty.' This means you'll be charged for not paying all the money you owe the IRS. The other is the 'failure to file' penalty, which comes with an even bigger fine.
Jeffers shares, "That penalty is 5% per month on the unpaid balance until it's paid off. So that one's the big one. That's why the extension is so important if you think you're going to be late or you think you're going to owe. And as you can see depending on the balance, that number can rack up."
So by taking the extra step of filing an extension, it could keep more money in your wallet.
If you file for a tax extension, the IRS says your return is due October 15th of this year.
Remember, the tax deadline this year is April 17th.