GETTING STARTED How to Adjust Your Withholding Track Down Your Tax Records Your Tax Form Checklist MORE... TAX TOOLS   From TaxCut by H&R Block Will you have to pay the alternative minimum tax in 2004?   Kiplinger Tools How much should I put in my flexible spending account? 2004 survey of state tax burdens Sponsored By: Recent Columns Fear of the AMT - Feb. 7, 2005 Track Your Basis - Feb. 4, 2005 Calculating Capital Gains Tax - Feb. 3, 2005 Capitalize on Property Settlement Costs - Feb. 2, 2005 Deducting Mortgage Interest - Feb. 1, 2005 Time for an IRA Distribution? - Dec. 15, 2004 MORE ...

TAX TIPS
Let the IRS Do the Math
by Kevin McCormally

Everyone knows that even if you file for an extension -- using Form 4868 to push the deadline back to August 16 -- you still have to pay any tax you owe by midnight April 15, right?

Well, actually that's wrong.

Millions of taxpayers have the right to put off paying for at least 30 days and maybe a couple of months. No interest. No penalties.

How? By leaving a few blanks on your tax return -- the ones that show your tax bill for the year and reconcile it with how much tax was withheld to figure if you have a refund coming or a balance due.

Leaving those lines blank tells the IRS you want it to figure your tax, which it will be happy to do. If you owe money, the agency will send you a bill, and you'll have 30 days after you get the bill to pay up.

So, this little trick can give you a short reprieve.

If you're interested, get a copy of IRS Publication 967, "The IRS Will Figure Your Tax."

You can't qualify if you itemize deductions, have any investment transactions to report on Schedule D or if your income is $100,000 or more. Several other restrictions are outlined in Publication 967.