Hello,
I am currently paying back taxes for the 2006 and 2007 tax years via an approved installment agreement with the IRS. I have made all installment agreement payments on time.
I expect the IRS to owe me a modest refund for the 2008 tax year (which, of course, will be applied first to my 2006 and then my 2007 taxes). However, although I have done enough of my return to know I will get a refund, it is a busy time for me and it may be difficult for me to finish my taxes for 2008 by April 15, 2009.
I am wondering whether, if I request an automatic six month extension of time to file my 2008 taxes until October 15, 2009, this would be allowed given that my installment agreement requires to file all future returns on time. Is a return filed by the extended due date considered "on time" for this purpose?
Note that I am quite certain that I will be getting a refund for 2008-- I just haven't calculated exactly how much yet--so there should be no concern regarding failure to pay my 2008 taxes on time--it is just a question of whether it would be considered filing on time at this point.
Thanks!!
PS--I realize, of course, that by filing as early as possible, the refund from 2008 will be applied to my back taxes earlier and hence may reduce the future interest/penalties I owe on my installment agreement. So it is in my best interests to file early--however, the amount of the refund is not going to be huge so a small delay is not that major a consideration for me from that perspective.