An extension to file, however, is not an extension to pay tax. For instance, if you owe tax for 2014, you should pay the tax by April 15, 2015. If you do not know how much your tax is, you should estimate and pay your estimate. Later in the year, upon filing, you will either (a) pay the balance due with interest and penalty, or (2) receive a refund.
What happens if I Owe Tax and cannot pay?
If you cannot pay your tax, you can request an IRS Installment Plan. If you can pay at least 90 percent of the taxes you owe, you may not face a penalty. Here is a helpful link that explains the IRS penalties and interest charges: http://www.irs.gov/taxtopics/tc653.html
To apply for an Installment Plan, you must provide answers for the following questions:
1. Amount you are paying now
2. Proposed monthly payment
3. Day of month payment due (1st through 28th)
4. Most convenient time to call you at home
5. Phone Number
6. Most convenient time to call you at work
7. Phone Number
8. Name, Address of Bank for the checking account Auto-Withdrawal
9. Routing #
10. Checking account number