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Prepare Your Own Extension By Phone

On April 1, 2001 IRS will be opening a special phone line so can call in for your own automatic 4-month extension:

Call 1-888-796-1074

You will need to have at hand the following information:

A filled in Form 4868

A copy of your 1999 tax return. There is certain information on it that IRS will use to verify your identity.

When you're done, the system will give you a special confirmation number - do NOT lose this, it will be your only proof of your extension.

If you need to make a payment with your extension, the system will let you make an electronic transfer from your checking or savings account. There is no IRS fee for this service.

Naturally, you may also do it the old-fashioned way - e-file through your tax professional or your tax software....or the really old-fashioned way - mail it in.

For more details

[Note: I know the form looks really easy to fill in and file. The hard part is why it takes me (or your tax preparer) so long. You see, your extension will not be valid if you don't have some kind of reasonable amount shown for the tax liability you expect to owe - even if you can't pay it on April 16th. Many people doing their own extensions (and not having money) just show -0- due and forget it. And that's exactly what that extension is worth. If you will be owing $3,000 - that extension will be useless and you will face the non-FILING penalty of 5% each month until you file your return. So, please, be sure to make a good estimate of what you're going to be owing when you report the numbers on that extension. (There are a few other considerations. You can find some notes online in TaxMama's article, To File or Not To File, a Procrastinator's Dilemma.]

Published TaxMama.com 3/23/01 ~ Courtesy IRS