The answer is easy; you want to avoid extra charges.
Your income tax return is due on April 18, 2011. Late charges may add as much as 50% to your tax bill.
If you don’t file your tax return by that date, then you will be subject to Late Filing Penalties and interest.
These penalties can cost you hundreds and often thousands of dollars. The normal penalty for late filing is 4.5% of tax owed for each month or part thereof; or up to 22% total over five months. The minimum for over 60 days late on your tax return, is the lesser of $100 dollars or 100 percent of tax owed.
By filing an extension, you will avoid Late Filing Penalties. Our fee is considerably less than those potential penalties you may incur. Not to mention the peace of mind that our service provides to you.
Therefore, you can easily determine and understand the benefits of filing your own tax extension through our service. Late Penalties are normally one half of the tax owed for each month, or part of a month, alternatively the 25% maximum penalty is applied.
If your taxes are unpaid 10 days after the IRS issues a notice of levy, the half of one percent increases to one percent. Individuals who file by the return due date, will be charged one quarter percent for any month in which an installment is in effect.
In general the interest is calculated on any unpaid balance from the due date of your tax return until the date of payment. This interest rate is the federal short-term rate plus three percent, which is determined every 3 months.
Note: Please visit www.IRS.gov for updated penalties and interest details for 2011.