Salisbury CPA gives insight about extensions/penalties as the filing deadline closes in

Tax season may be coming to an end, but that means that it's time for you to start filing your taxes if you haven't done so already. 

The deadline is exactly one week from today, so the last minute scramble to get everything done may be a handful. 

But here are some last minute tips that can be helpful before April 17th hits. 47 ABC spoke to Thomas Hudson, a CPA at Twilley, Rommel & Stephens in Salisbury for some insight. 

If you can't t get the work done before the due date, we're told an extension is your best bet and everyone is eligible to do that as long it's done before the deadline. 

It's quite simple, all you have to do is fill out "Form 4868" to receive a six month extension. 

"If you don't file an extension then you incur other penalties and that's for failing to file a tax return. So when you file an extension you are basically satisfying the requirement asking for more time to file," Hudson says. 

You may get more time to file, but if you owe money, you still have to pay your taxes by the deadline date.

"If you don't make that payment and you end up owing before you file on October 15th, then interests and penalties will go on to the amount that you owed. If you actually end up getting a refund and you file for an extension all the way to the October 15th and you file your return in between that six month extension, then you won't have to pay an interest in penalties."

If you owe money and ask for more time, the amount you need to pay actually becomes a guessing game. You have to look at different factors such as last year's taxes, take a look at your income this year, and then have a good estimate on how much you think you owe. 

Hudson tells 47 ABC, "If you're missing one piece of information such as income from a business or something like that, take your best guess on what that is and pay as close as you possibly can so you can reduce those penalties that you could potentially pay."

If you want to file an extension, tax preparation software like TurboTax can be a great tool. You can do it for free if your income is under $66,000, otherwise you may need to pay a small fee.