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DOWN TO THE WIRE

April 07, 2006

Tax season is entering its last ten days, so we will helpfully nag remind you of important tax items that may slip your mind in the tax frenzy.

We will start by reminding you that your tax return is due April 17 this year because April 15 falls on a weekend. Unless, of course, you live in one of the New England states that celebrate Patriot's Day to commemorate the rout of the Redcoats between Concord and Boston back in '75. Then you have until April 18.

If you don't bother to extend (Form 4868), you will be hit with a penalty starting at 5% of the amount you owe; this increases by 5% per month until it maxes out at 25%.

If you do extend but don't pay at least 90% of your balance due by the deadline, you will pay a 1/2% penalty on the shortfall, plus 1/2% for each additional month you are late. If you extend and have at least 90% of your taxes paid, you have no penalties as long as you actually file and pay up by the October 15 extended due date.

WHAT ABOUT IOWA?

Iowa returns are due May 1 this year (the usual April 30 deadline is on a Sunday). Extensions are automatic - no form needed - if you have paid in at least 90% of your taxes. If you need to add a little to get up to 90%, use Form IA-1040-V.

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