Should I file an extension for my taxes?

If you do not have your taxes done and filed yet time is running out.  Tomorrow is the due date.  If you know that your taxes will not be ready by tomorrow what should you do?

You can file an extension with the IRS that will allow you an additional 6 months to get your taxes in.  Sounds great right, but there is a catch: if you owe taxes and you file under the extension you will pay interest on the amount owed starting on April 16th until they are paid.  However, if you owe money and file late without filing for an extension not only will you owe interest but also penalties for filing late.  Not fun.  Either way, if at all possible it is better to get your taxes done by the 15th to keep from paying extra.

If you are getting a refund there is no penalty for filing late, but neither will the IRS pay you interest for allowing the government to use your money.

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