
DATE: Friday, April 11, 1997                TAG: 9704110577

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY TOM SHEAN, STAFF WRITER 

                                            LENGTH:   94 lines

IF YOU OWE, SEND SOMETHING EXCUSES WON'T CUT IT; FILE FOR EXTENSION OF FACE PENALTIES

With Tuesday's deadline looming, some people will come up with any number of excuses for not filing a federal tax return on time.

They may be missing a W-2 from an employer. They may lack the form necessary for reporting capital gains. They may feel that too many other matters are more pressing.

Whatever the reasons people might have for not getting a return to the Internal Revenue Service by Tuesday midnight, those who work with tax returns for a living have this bit of advice:

If you owe any taxes for 1996, send something to Uncle Sam.

The penalities for not filing are too stiff to ignore. In addition, delays can complicate the process of filing an accurate return.

``If you have a tax liability and fail to file, the difficulties snowball,'' said Elaine Perlin of Perlin & Matthews Ltd., a Norfolk tax-return preparer.

If you're missing certain forms or need additional time to calculate what you owe, you can apply for an extension.

However, too many people seeking an extension assume it's an extension for paying what they owe, said Ken Whitley, proprietor of Ken Whitley's Tax Service in Portsmouth.

``They can't extend the payment. They have to pay an estimated amount so they don't get penalized,'' he said.

By completing Form 4868 and paying your estimated tax obligation, you have until Aug. 15 to submit a complete return.

Among the 3.1 million taxpayers who will file federal returns in Virginia this year, about 5 percent will seek an extension, said Joy Perkins, an IRS spokesperson in Richmond.

What if you owe Uncle Sam taxes for 1996 and can't pay the amount in full by April 15?

It's a problem that often occurs when those who expected a refund put off working on their returns until the last minute, said Perlin. They then discover that they owe something but can't come up with the money.

Instead of waiting until you have what you owe, file your return by the deadline and include a partial payment, tax-return preparers advise. Also, you can request to pay the balance according to a schedule. By doing that, you will will still have to pay interest on the amount owed, but you avoid being penalized for not filing.

Although there is a form for requesting a tax payment schedule, you get the same result by writing a letter and including it with your tax return, said Perkins, the IRS spokeswoman. ``The service will contact them and work out a payment schedule,'' she explained.

If you are owed a refund, there is less pressure to file a tax return by April 15. But don't wait too long. A three-year delay will cause your refund to be forfeited, said Kerry Goldmeyer, a supervisor for H&R Block tax-preparation offices in Hampton Roads.

For those needing forms or simple advice, there are several options. One source of information is the IRS's hotline: (800) 829-1040.

The IRS maintains two taxpayer assistance offices in the region, one in the Norfolk Federal Building in downtown Norfolk and another at Riverdale Shopping Center in Hampton. These offices, which are normally open from 8:30 a.m. to 4:30 p.m. on weekdays, will be open until 5:30 p.m. next Monday and Tuesday.

For computer-users, advice is available from the IRS's Internet home page at (http://www.irs.ustreas.gov). This includes IRS forms that can be downloaded and printed.

Pilot Online's Tax Guide also has links to Internet sites for downloading IRS forms, filing electronically, and getting advice from the IRS and the Virginia Department of Taxation. The address is (http://www.pilotonline.com).

Those who want someone else to wrestle with the details can still get help from tax-preparation services. Several will be open Saturday and Sunday and will have extended hours Monday and Tuesday.

In addition to using the U.S. Postal Service or filing electronically, taxpayers have the option this year of using four overnight express services: Federal Express, United Parcel Service, DHL and Airborne Express. Be sure to hang on to the delivery receipt.

But before sending off a completed return, it's worth checking your figures and making sure they appear on the correct lines.

``Taxpayers filing during the last few days tend to make math errors, so we encourage them to double-check their calculations,'' said the IRS' Perkins.

In addition, verify the accuracy of your Social Security nunber, she advised.

With your federal return out of the way, you can then turn to your Virginia tax form.

That deadline is May 1. ILLUSTRATION: Color photo

ASSOCIATED PRESS

The average family of four will fork over $1,300 in taxes this year

to pay for interest on the national debt, according to the Concord

Coalition. The coalition dramatizes the $5 trillion debt with its

Debt Clock - a 25-foot-long digital timepiece that adds $9,500 to

the debt every second. The clock, which has toured the nation since

1993, will be at Waterside in downtown Norfolk today from 10 a.m.

until 3 p.m. The Concord Coalition is a national grassroots

organization whose goal is to balance the budget. KEYWORDS: INTERNAL REVENUE SERVICE INCOME TAXES