If you are having trouble paying your taxes by the deadline date of April 15, 2010, then you're not alone.
File your tax even if you can't pay them
The reason is because the penalty for not filing your taxes is greater than not paying them. Funny but true: there is a possibility of imprisonment for not filing but not for being unable to pay your taxes on time - however, there may be some penalties if the IRS can prove that you intentionally did not pay your taxes.
If you file your taxes and don't pay what you owe in full, then the IRS will send you a letter asking for what's due including the included interest in about 45 days - this should buy you some time to come up with the money to pay for your taxes.
File for a tax extension
You can delay your tax deadline by six months, until October 15 by using Form 4868 electronically or by mail. This will allow you to file your taxes late but will not delay your deadline for paying your taxes - so if you are still late on your tax payments then you must still consider the interest due. The good thing is that if you file for a tax extension then you will be charged 0.5% late fees a month plus interest instead of 5% late fees a month if you did not file for a tax extension.
Paying Some of your Taxes is Better Than Nothing
If you are unable to pay your taxes in full when you file your return then pay whatever you can to decrease late fees and interest.
Late tax payment penalties
For each month that you are late, there is a 5% penalty of your taxes owed with a maximum of 25%, typically.
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