Your Tax Question - 012

Dear John, I know that I will owe taxes this year but I really do not have the money, what can I do? Sincerely, Desperate.
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Dear Desperate,

You can do a couple of things. First, you can fill out Form 4868 for an automatic 6-month extension and then simply pay the interest on what you owe in October. Or, if you will have the money soon after April 15th you could file but leave it to the IRS to figure your tax for you - that way the IRS would bill you which would give you an extra 30-45 days to come up with the money.

In the worst case scenario (and I don't endorse this) you could borrow the money from your grandmother and never repay her - she is likely less intimidating than the IRS. ;-)

Best of Luck,
John.

PS. I would be happy to help you with the IRS part (not your grandma). email me

Your Tax Question - 010

Dear John, Our home just recently burned and all of my paperwork for this year’s taxes was destroyed – what am I supposed to do? Frank.
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Hey Frank,

Sorry to hear about the home, I pray everyone was alright. Not to worry with the April 15th deadline. Simply fill out IRS Form 4868 for an automatic 6 months extension on your taxes' due date. You will have to send in the form with a reasonable estimation of your tax due and then pay an interest rate on any unpaid tax actually due from the original due date. It is not the best you could hope for but at least there is a little something for such a catastrophe.

Warmly,
John

PS. If you need help with this please email me.