April 19, 1993
IRS Offers Filing Extensions
to Those Who Can't Pay
WASHINGTON - April 15 is just around the corner and you
realize that you'll never be ready to file by then. What's worse -- you know you owe money
and don't have it. This year, the Internal Revenue Service has a new solution for you.
For the first time, the IRS will now accept an application for an automatic four-month
extension of time to file, even if the taxpayer can't pay what's owed with the extension.
In the past, if a taxpayer filed an extension, IRS would consider the request invalid and
assess the failure-to-file penalty on the delinquent return. The failure-to-file penalty
is 5 percent per month on the balance due on the return, not to exceed 25 percent.
To get an automatic four-month extension of time to file, taxpayers should file form
4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax
Return, and properly estimate their tax liability. Current instructions for Form 4868 and
other IRS publications still state that all tax must be paid by April 15. The IRS will
update these instructions for 1993 returns to reflect the new rules.
Even with the extension, there are interest charges on any taxes paid after April 15.
If payments made by April 15 are less than 90 percent of the total tax, there is a late
payment penalty of 0.5 percent of unpaid taxes per month. To keep these charges as low as
possible, the IRS advises taxpayers to pay as much as as they can as soon as they can.
Taxpayers may even make payments before they actually file their returns.
Any taxpayer making payments before filing should be sure to include on the checks all
the information necessary to credit the money properly -- social security number (SSN),
the tax year and the form number. Example: SSN 123-45-6789, Tax Year 1992, Form 1040.
Joint filers should use the primary SSN -- that is, the number that will appear first on
Taxpayers who still cannot pay the taxes owed by Aug. 15 extended due date should file
their returns and attach Form 9465, Installment Agreement Request. This form allows
taxpayers to request a monthly payment plan and specify the amounts they are able to pay
It may be too late to call the IRS and get the extension form by mail but Forms 4868
and 9465 are available in local IRS offices. Some libraries have reference sets of forms
for photocopying -- among them, Form 4868.
As of April 2, the Internal Revenue Service had received 62.8 million returns, nearly 7
percent fewer than for the same period last year. The IRS has sent 44 million refunds,
worth a total of 42.75 billion. At $971, the average refund is down 0.6 percent.
1993 FILING SEASON STATISTICS
Cumulative through the week ending 4/3/92 and 4/2/93
1992 1993 % Change
Individual Income Tax Returns
Total Receipts 67,432,000 62,825,000 -6.8
Total Processed 58,919,000 54,450,000 -7.6
Filing Alternatives -- Total Receipts:
Electronic Filing 10,122,000 11,379,000 12.4
1040PC Format 865,000 2,570,000 196.9
TeleFile 119,000 138,000 16.0
Refunds Certified by the Martinsburg Computing Center:
Number 47,181,000 44,037,000 -6.7
Amount of Principal $46.071 bil. $42.751 bil. -7.2
Average Refund $976 $971 -0.6
(NOTE: these amounts should NOT be compared to the "processed"
numbers above, since those figures reflect Service Center
processing, which is completed at least a week before refunds
are certified at the Computing Center)
Taxpayer Service Filing Season Statistics
through 4/2/92 through 4/3/93
calls answered 14,625,366 14,628,737
Tele-Tax calls 24,544,936 21,839,798
Technical tapes 3,425,356 3,569,192
Refund Info. 21,119,580 18,270,606
Previous | Next
1993 IRS News Releases | News Releases Main | Home