Question

If an individual taxpayer discovers that he has a balance due on his tax return, but he does NOT have the money to pay the amount, he should file an extension in order to extend the date at which the payment is required to be made.

a.true
b.false

Answer 1

If a taxpayer discovers a balance due but does not have the money to pay, they should file an extension to extend the payment deadline.

Step-by-step explanation:

If an individual taxpayer discovers that they have a balance due on their tax return but does NOT have the money to pay the amount, it is recommended to file an extension to extend the date at which the payment is required to be made. This extension gives the taxpayer more time to gather the funds needed to pay the balance due. However, it is important to note that an extension does not waive any penalties or interest that may accrue on the unpaid amount. Therefore, it is advisable to pay as much of the balance due as possible to minimize these additional costs.