Common IRS Extension Misconceptions Leave Many Americans Seeking Tax Relief

Aug. 2, 2011 - PRLog -- StopIRSDebt.com, experienced tax debt relief firm, shares a simple reminder to Americans about IRS extensions. Extensions, like the automatic extension provided to taxpayers abroad who missed the June 15 deadline to file their 2010 federal income tax returns, does not mean you have an extension to pay any taxes owed.

Taxpayers who take advantage of the filing extensions, but don’t pay their estimated taxes due, begin getting charged interest, compounded daily.  “Many taxpayers are unaware that the filing extensions offered by the IRS apply only to the actual tax return filing, not the payment.  The resulting interest and penalties make their tax debt grow to an amount that becomes difficult for the average American to pay off,” says Atyria Clark, Lead Attorney for StopIRSDebt.com.

The current interest rate is four percent per year, compounded daily to any payment made after April 18, 2011.  Late payment penalties are usually .5 percent per month and apply to payments made after June 15, 2011.  Says Clark, “Many of our clients had intentions of paying their taxes, but took advantage of the extension without making a payment.  By not understanding the laws, they quickly found themselves unable to pay their tax debt and had to turn to us to negotiate a tax relief plan with the IRS on their behalf.”

As noted on the IRS site, “Please be aware that an extension of time to file your return does not grant you any extension of time to pay your tax liability.”

About StopIRSDebt.com - StopIRSDebt.com offers tax relief services for both state and federal tax debt.  The team at StopIRSDebt has assisted thousands of customers and can service clients throughout the United States.  From tax preparation to lifting wage garnishments, our team of tax professionals is ready to assist you.  www.StopIRSDebt.com or 1-888-9-STOP-IRS