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Feeling taxed yet?
Friday's the deadline for filing, but if you can't handle it, don't panic. Ask for an extension, estimate the bill and make arrangements.

By HANK EZELL

Cox News Service

April 15, 2005

ATLANTA — The deadline for filing income tax returns is midnight Friday, and millions of Americans don't know how they'll get through it.

It's not just the problems of finding the time to fill out the forms and money to pay what they owe. The big problem, as ever, is confusion.

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As the very last minute rolls around, there is good news: At last count, 72.3 million Americans have gotten 2004 income tax refunds from the Internal Revenue Service, averaging $2,189 each.

The bad news is that the last minute has rolled around. All state and federal tax returns are due by midnight Friday.

As usual, some good though laggard citizens will spend the afternoon visiting IRS offices, libraries, grocery stores, Web sites and other outlets in search of that last, crucial form. Others waited till the last minute because they owed more money to the government, and they will be deciding whether to write a check or flex their credit cards to pay.

And — in a procession as traditional as the Easter parade and as exhausting as a marathon — there will be traffic jams outside selected post offices.

This late in the game, only a few questions remain to be answered.

Q: What if I can't finish the paperwork?

A: You won't be alone. The IRS expects that about 9.1 million out of 133 million taxpayers will ask for extensions. A four-month extension is automatic, but it's not a free pass.

One catch: You can put off the paperwork but not the obligation to pay. Second catch: You'll have to estimate how much you owe and send in the money. For some taxpayers, that means filling out most of their regular returns.

"By the time you do the work to figure out the information on the extension, you might as well do your taxes," said Kathy Burlison, director of tax implementation at H&R Block.

On the Internet, you can find instructions and download the necessary Form 4868 at http://www.irs.gov.

If you filed a tax return last year, you can call the IRS at 1-888-796-1074 to submit your request.

For an extension on Georgia tax returns, look for details on page 3 of the instruction booklet mailed out by the state or go to http://www.gatax.org.

Q: What if I don't have the money?

A: Three choices: Pay what you can, charge it or ask for an installment plan.

If you make a partial payment, you can expect to receive a bill from the IRS for the rest. You'll have to pay interest and a late-payment penalty.

You can charge it on American Express, MasterCard, Visa or Discover Card.

Two companies are authorized to accept your payment, and each gets a 2.49 percent service fee — on top of any interest charges on your credit card.

Take your pick: Official Payments Corp., 1-800-272-9829 or http://www.officialpayments.com, or Link2Gov Corp., 1-888-729-1040 or http://www.pay1040.com.

If you want an installment plan, you'll have to fill out Form 9465. The IRS will charge interest and in some cases a late-payment penalty on the unpaid balance. There is a $43 fee to set up an installment agreement. For details, go to http://www.irs.gov/taxtopics/tc202.html.

Q: Is there any way to cut down what I owe?

A: Yes. For tips on maximizing deductions you are eligible for and for other strategies, check out http://www.ajc.com/money and http://www.turbotax.com.

If you can get it done by midnight, there are breaks for contributions to a traditional individual retirement account or to Georgia's 529 college savings plan.

For help contributing to an IRA, check with your broker, bank or mutual fund manager. Note that they may have short office hours and may be crowded. Another note: There are some limits on eligibility — ask your adviser, or read IRS Publication 590.

You can get a state tax deduction — maximum $120 — if you contribute $2,000 or more to the Georgia Higher Education Savings Plan. To make an immediate contribution, go to http://www.gacollegesavings.com and follow the directions.

You can also mail in your contribution.

"We will count the contribution on the 15th if the envelope is postmarked the 15th," said Chuck Penuel, director of the plan.

Q: When will I get my refund?

A: You can check the status of your refund at http://www.irs.gov. Click on Where's my Refund?

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