WASHINGTON - It's here, April 15, the deadline for filing income tax returns, and the IRS has some reassuring words for procrastinators, especially those who can't pay what they owe: Don't panic.
The agency also has some advice: File a return anyway, or at least file for an extension.
"The worst thing you can ever do with the IRS is ignore them," said Jackie Perlman, an analyst with the Tax Institute at H&R Block. "They don't like to be ignored."
The Internal Revenue Service expects to receive more than 20 million tax returns this week. The agency had received about 102 million as of the end of last week.
With job losses mounting and the economy in shambles, the IRS has promised to be kinder and gentler to those who are struggling to pay their tax bills. The agency is offering to waive late penalties, negotiate new payment plans and postpone asset seizures for delinquent taxpayers who make a good-faith effort to settle their federal tax debts.
But agents will continue to impose big penalties on those who simply neglect to file an income tax return.
"We also have to be tough on those who flout the law and won't pay what they owe," said IRS Commissioner Doug Shulman. "The American people who play by the rules every day expect us to go after those taxpayers who don't pay their taxes."
Here are some questions and answers for last-minute filers.
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Q: What if I don't file a tax return by the April 15 deadline?
A: Taxpayers who don't file returns or extensions by midnight on April 15 face penalties of 5 percent a month on any unpaid taxes, up to a maximum of 25 percent.
For taxpayers with small outstanding tax bills, there is a minimum penalty of $135, or 100 percent of the unpaid taxes, whichever is smaller. For example, if you owe $100 and don't file a tax return, the penalty is $100. Plus, you still have to pay the taxes.
And that's not all: You'll also owe interest on the unpaid amount. The government is currently charging a 3 percent annual interest rate, compounded daily.
If you file a return but cannot pay all you owe, the penalty is just 0.5 percent of the unpaid taxes a month. That's a tenth of the penalty for not filing. Though you'll still have to pay that interest, of course.
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Q: What if I can't afford to pay my tax bill?
