No time for taxes? File for extension
| • | When filing your taxes, it doesn't pay to delay |
By Deborah Adamson
Advertiser Staff Writer
Leina'ala Satterfield of 'Ewa Beach eyed a desk full of scattered paperwork at the IRS office in Honolulu yesterday afternoon, unsure of what to do.
Jeff Widener • The Honolulu Advertiser
The single mother of three was trying to file an extension for turning in her 2003 tax return and take care of unfinished business from 2002, but she was told she would have to come back because a critical document needed a signature.
After going over various forms at the local IRS office yesterday, Leina'ala Satterfield of 'Ewa Beach learned she had to come back with a signature required on a document.
She hasn't been able to get her tax papers organized because life got in the way:
She goes to school, works on-call as a nurse in training, takes care of her pre-teen daughters and participates in church activities.
"I'm really stressing out," said the 34-year-old University of Hawai'i nursing student. "Giving birth is easier than this."
All across the United States, there are people like Satterfield who have been too busy to beat tomorrow's federal tax deadline. Every year, 6.5 percent of all taxpayers file for an extension, said Internal Revenue Service spokeswoman Shawn George.
That's 8.6 million Americans nationally — or 38,350 in Hawai'i — based on current estimates of tax returns.
If you're panicking because you haven't gotten your act together before the deadline to file federal taxes, don't fret.
"It's very easy to get an extension," George said.
• The Honolulu IRS office does not offer curbside service for federal returns, but tax returns can be dropped off late tomorrow at some post offices, including the downtown location at 335 Merchant St., and still receive an April 15 postmark. Call the U.S. Postal Service automated line at (800) 275-8777 for details. • State workers will accept tax returns curbside on both Punchbowl and Halekauwila Streets from 5 p.m. to midnight Tuesday, April 20.
You don't need an excuse, but if you think you owe money, you have to estimate the amount and pay it. You can adjust the figures later. The penalty for not paying is 0.5 percent a month on the amount you owe.
Postal locations
If you don't file taxes at all, your penalty is much steeper — 5 percent a month. The IRS also will charge you interest, currently at 5 percent, on top of the penalty.
If you think you'll get a refund, you don't need to file. But you won't get any money until you do so. George said it's safer to file anyway, just in case you're wrong about the refund.
You can file for a four-month extension until midnight tomorrow by using Form 4868, which is for individuals and married couples. The form can be downloaded from www.irs.gov or you can pick up the form at any local IRS office and some public libraries as well.
You could also call in an extension at (888) 796-1074 through tomorrow. Make sure to fill out the form first and have banking information handy if you're going to pay taxes electronically.
You can file an extension electronically through a tax preparer as well, George said. If you charge your payment on a credit card, you'll have to pay any related fees.
As for state taxes, you've got more breathing room because the deadline is April 20.
To seek an extension for filing your Hawai'i tax return, you need to fill out Form N-101A, according to the state Department of Taxation.
You can download the form at www.state.hi.us/tax or call 587-7572 or (800) 222-7572 to have it mailed or faxed to you. You also can pick it up at the state tax office at the Princess Ruth Ke'elikolani Building, 830 Punchbowl St., in Honolulu or any district tax office on the Neighbor Islands. Some libraries have the form as well.
For general information about state taxes, call 587-4242 or (800) 222-3229.
You cannot call in an extension for filing Hawai'i tax returns as you can for federal returns. But you can file an extension electronically at www.ehawaiigov.org/efile.
If you owe money, make sure to include the amount due. If you don't or if you don't include enough money, you will be assessed interest at 0.667 percent a month. If paid within 60 days, there is no penalty.
But after that, a penalty of 20 percent of taxes unpaid is applied on top of the interest. If you don't file at all, you would be charged a 5 percent penalty per month on taxes owed.
If you think you're getting a refund, you'll get an automatic extension. But you have until Aug. 20 to file your regular tax return to get your money.
Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.
