August 16 Federal Tax Deadline

WASHINGTON - Most taxpayers have already filed their 1992 federal income tax returns. But for the five and one-half million taxpayers who opted for automatic extensions of time to file, the deadline is approaching. August 16 is the due date for these taxpayers to file their tax returns for last year.

IRS said it is important for taxpayers who have not yet filed to do so by Aug. 16 to avoid penalties. Relief is available, however, for people who cannot file or pay tax due.

Taxpayers with special circumstances, such as hardship, that prevent them from preparing and filing their tax forms may request an additional two-month extension that will give them until Oct. 15 to file. These taxpayers will be granted the extension even if they cannot send in payment of outstanding 1992 taxes with their extension request.

Taxpayers granted the additional time to file will not be penalized for late payment of tax if they pay the balance of their 1992 tax when they file the tax return by Oct. 15 and if 90% of their total tax for 1992 was paid by April 15.

To request the additional time to file, taxpayers must send Form 2688 to the IRS by Aug. 16. IRS will advise them in writing if their requests are granted or not. Those who are not granted the ad- ditional time must file within ten days of the denial letter. Form 2688 is available from all IRS offices.

Taxpayers who do not request the additional extension should be certain to file their tax returns by Aug. 16 even if they are unable to pay the tax they owe. Filing the tax return will avoid the late filing penalty, which is 5% per month of unpaid tax.

Those who file but cannot pay may request a monthly payment plan by attaching Form 9465, Installment Agreement Request, to the front of their tax returns. Outstanding tax balances are subject to interest charges, currently at a rate of 7% a year, and the late payment penalty of one-half percent a month.

Form 9465 is available from all IRS offices or by calling 1-800-TAX-FORM. A taxpayer who is unable to obtain the form may instead attach to the front of the return a handwritten request for a monthly payment plan. The request needs to include name, social security number, the amount of tax outstanding and the number and amount of monthly payments the taxpayer will pay.

Last year, 1.4 million additional two-month filing extensions were granted by IRS. Since Jan. of this year 885,000 taxpayers have requested monthly payment plans.

Midwest flood victims do not need to submit a request for additional time to file or to make monthly installment payments. IRS previously announced that these taxpayers have until Oct. 15 to make penalty-free tax payments and return filings.

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