Taxes: Put 'Em Off, but Don't Blow 'Em Off

Don't be embarrassed to admit it.

Tax season's ominous April 15 deadline is next week -- but maybe you haven't organized your paperwork or made your estimated payments.

Ignoring the mess is a tempting option. But filing for an extension is a more prudent alternative, according to Mark Luscombe, principal federal tax analyst for CCH, a tax-information provider. "The one thing that can make a bad situation worse is not filing your return or [not] requesting an extension," he says.

Snubbing the IRS means you'll incur a failure-to-file penalty -- 5% of the tax due for every month or any fraction of a month that the return is overdue, up to 25%. There's also a minimum penalty for any return not filed within 60 days of the due date, plus extensions, of $100 or 100% of the tax due, which ever is less. Filing for an extension, however, can spare you this scenario. ...