Suppose that you are not able to complete your tax returns by April 15.Which of the following statements is most accurate?

Question

Quizplus · Accepted Answer

The most accurate statement is that you can apply for an automatic extension - no questions asked, but you must enclose a check in payment for estimated taxes due. This automatic extension gives you an additional six months to file your tax returns, but it does not give you extra time to pay any taxes owed. Therefore, you must estimate your tax liability and pay at least 90% of the estimated tax due with your extension request to avoid penalties and interest. Option A is incorrect because you do not need to go to tax court to get an extension. Option C is partially correct, but it fails to mention that the taxes owed must be paid by the extension deadline to avoid penalties and interest. Option D is incorrect because it implies that you do not have to pay interest on taxes owed if you file for an extension after April 1, which is not true.

Suppose That You Are Not Able to Complete Your Tax