WASHINGTON — It’s here, April 15, the deadline for filing income tax returns, and the IRS has some reassuring words for procrastinators, especially those who can’t pay what they owe: Don’t panic.
The agency also has some advice: File a return anyway, or at least file for an extension.
“The worst thing you can ever do with the IRS is ignore them,” said Jackie Perlman, an analyst with the Tax Institute at H&R Block. “They don’t like to be ignored.”
The Internal Revenue Service expects to receive more than 20 million tax returns this week. The agency had received about 102 million as of the end of last week.
With job losses mounting and the economy in shambles, the IRS has promised to be kinder and gentler to those who are struggling to pay their tax bills. The agency is offering to waive late penalties, negotiate new payment plans and postpone asset seizures for delinquent taxpayers who make a good-faith effort to settle their federal tax debts.
But agents will continue to impose big penalties on those who simply neglect to file an income tax return.
“We also have to be tough on those who flout the law and won’t pay what they owe,” said IRS Commissioner Doug Shulman. “The American people who play by the rules every day expect us to go after those taxpayers who don’t pay their taxes.”
If you can’t afford to pay your tax bill, pay what you can and consider asking for a short-term extension or an installment agreement for the balance. Generally, taxpayers are eligible for installment agreements if their bill is less than $25,000 and they have paid their taxes on time in the past.
Taxpayers with installment agreements must still pay penalties on the unpaid balance, but they are reduced to 0.25 percent a month. Taxpayers can request an installment agreement using Form 9465. They can also request an agreement at www.irs.gov.
Taxpayers can also use credit cards to pay their tax bills, but they should be careful because some credit cards have high interest rates and fees.
As the IRS says on its Web site, under the “If You Can’t Pay” heading: “Don’t panic. You have options.”
Last-minute tax tips
Make sure your return has sufficient postage, 42 cents for the first ounce and 17 cents for each additional ounce. If you have a number of extra forms, it’s likely to weigh more than an ounce.
Mail the return in the preaddressed envelope. Don’t forget a return address.
To ensure an April 15 postmark, mail the return at the Everett Mail Processing Facility, 8120 Hardeson Road, before midnight.
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