Indian Time - A Voice from the Eastern Door

United States Tax filers will have until Tuesday, April 17, to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16. According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year. Tax filers requesting an extension will have until Oct. 15 to file their 2012 tax returns. An extension (Form 4868) must be filed prior to the April 17th deadline to be entitled to the 6 month extension.

New this year is the “Penalty relief” for tax filers whom have a tax liability and need six months to pay in full. Please read below to see if you qualify.

Penalty relief: To assist those most in need, a six-month grace period on the late-payment penalty is available to certain wage earners and self-employed individuals. An approved request for a six-month extension of time to pay will result in relief from the late-payment penalty for tax year 2011 if:

• your income is within certain limits and other conditions are met;

• your request is received by April 17, 2012; and

• your 2011 tax, interest and any other penalties are paid in full by Oct. 15, 2012.

To find out if you are eligible and to apply for the extension and penalty relief, complete and mail Form 1127-A, Application for Extension of Time for Payment of Income Tax for 2011 Due to Undue Hardship.