Lots of ways to pay on tax day


POSTED: Sunday, March 28, 2010

Can you believe it is almost April? The tax filing deadline is right around the corner. What happens if you need more time? You can file for an extension for both federal and state purposes.

Individual taxpayers unable to file their federal income taxes before April 15 may file Form 4868 to apply for a six-month extension on filing Forms 1040, 1040A, 1040EZ, 1040NR or 1040NR-EZ. The extension gives the taxpayer until Oct. 15 to file.

There are three ways to file for an extension:

1. File Form 4868 electronically by accessing IRS e-file using a home computer or a tax professional who uses e-file. Refer to your tax software package or tax preparer for ways to file electronically. Be sure to have a copy of your 2008 tax return—you will be asked to provide information from the return for verification. If you wish to make a payment, you can pay by electronic funds withdrawal or send your check or money order directly to the IRS.

2. File a paper Form4868. This can be found on the IRS' Web site, at

3. Pay all or part of the estimated income tax due using a credit card through the IRS' Web site; click e-file. You can also pay by phone or Internet through one of the following service providers:

» Official Payments Corp.: (800) 2PAY-TAX,

» Link2Gov Corp.: (888) PAY-1040,

» RBS WorldPay Inc.: (888) 872-9829,

Note that an extension of time to file is not an extension of time to pay taxes due. If income taxes are not paid in full by April 15, a taxpayer may be subject to interest and penalties on taxes due.

U.S. citizens or resident who are out of the country on the filing deadline are allowed two extra months to file their returns and pay any taxes due without requesting an extension. However, interest will be charged from the original due date on any unpaid tax.

If more time is needed, Form 4868 may be filed for an additional four months. A taxpayer is considered out of the country if he lives outside of the U.S. or Puerto Rico and his main place of work is outside of the U.S. or Puerto Rico, or he is in the military or naval service outside of the U.S. and Puerto Rico.

In addition, a taxpayer must attach a statement to her timely filed income tax return showing that the requirements are met.

Hawaii income tax returns are due on April 20. In Hawaii a taxpayer is not required to file any form to request an extension on filing Form N-11, N-13 or N-15. A six-month extension is automatically granted as long as four conditions are met:

» 100 percent of the properly estimated tax liability is paid.
» The tax return is filed on or before the expiration of the six-month extension period.
» The tax return is accompanied by full payment of any tax not already paid.
» The taxpayer is not under court order to file a tax return on or before the prescribed due date.

For Hawaii, Form N-101A is used to make a payment toward the balance due with the filing of Form N-11, N-13 or N-15.

There's still time to file your return by April 15. If you think you will need more time, consider an extension.