Can I file state and federal taxes without paying them right away?
It is always better to file and not pay than it is to not file and not pay. Of course the IRS prefers that you file and pay at the same time. If you file a return that says you owe $460, but don’t pay the $460 by 4/15/08, then the IRS will charge you a penalty and interest. If you file an extension, the IRS still requires you to pay your estimated, or expected tax bill. If you owe money when you file your extended return on 10/15/07, the IRS will add on penalty and interest for any amounts not paid by 4/15/08. If you file and don’t pay, most likely the IRS will either deduct the $460 from the payment, or else hold up the stimulus payment. I have not seen any rules or procedures for these cases. The payments will not come from the IRS, but since the IRS will provide the information to the department that will send out the checks, I am sure they will let that department know who owes the IRS money and take their cut!
