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TAX TIPS
The 4868: Procrastinator's Friend
by Kevin McCormally

The clock is ticking louder and louder as the April 15 deadline approaches. If it seems hopeless that you'll finish your return by midnight Thursday, perhaps you should simply admit defeat and ask for more time. You can push the deadline back to August 16 just by asking the IRS for an extension.

In the misery loves company realm, get this: The IRS expects almost 9 million of your fellow sufferers to ask for more time. You used to have to file a Form 4868 to get the extension. You still can use the form. And if you do, it needs to be in the mail by midnight April 15. But the IRS will also grant extensions over the Internet or on the phone.

Although the extension gives you more time to complete your return, it doesn't put off the deadline for paying your taxes. If you will owe more when you get around to filing, you're supposed to pay it when you ask for the extension. If you're short, you'll be hit with a penalty.

Because most taxpayers get refunds, though, they don't have to worry about sending in money when they ask for an extension, as millions of taxpayers and their accountants do each spring.

If you need a copy of the Form 4868, you can download it from the IRS Web site, www.irs.gov, or photocopy it at a public library that has IRS Publication X.

If you want to ask for an extension on the phone, you still need a Form 4868. Fill it out and have a copy of your 2002 return handy (you'll need information on it to prove your identity) and then call 888-796-1074. If you owe money, you can pay it by authorizing the IRS to take it right out of your savings or checking account. (Have your account information ready.)

If you use tax preparation software such as TaxCut, for which Kiplinger provides expert advice, you can use the program to file for an extension. Follow the instructions in the software.