Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 5, 1990                   TAG: 9004060733
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-8   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

6 MILLION EXPECTED TO ASK MORE TAX TIME

The filing deadline for most Americans is April 16, but the Internal Revenue Service will grant an extension automatically if a taxpayer unable to file by that date mails in a Form 4868 instead. However, IRS spokesman Steve Pyrek noted Wednesday, the form must be accompanied by a check for estimated taxes owed.

It's not a good idea to underestimate your taxes when you seek an extension of filing time, says accountant Saul Epstein of the Philadelphia office of Ernst & Young.

"If you underestimate, you'll have to pay interest on the unpaid amount, and if the unpaid amount is more than 10 percent of your total liability, there will be an additional failure-to-pay penalty."

In some cases, Pyrek said, an underestimate also can result in a failure-to-file penalty.

The IRS expects 111 million returns to be filed this year, although not all taxpayers will meet either the regular deadline or an extended deadline. Through March 30, 60.1 million returns had been received, 2 million more than during the same period a year ago.

The IRS has processed 51.5 million of those returns, 3.5 million more than at this time last year. Nearly 79 percent of returns are qualifying for refunds; 40.5 million this year for $34.4 billion. At this time last year, about 78 percent, or 37.3 million, received refunds, which totaled $30.5 billion.

Nearly 3.8 million taxpayers have filed electronic returns, 270 percent above the same period of 1989 and considerably more than the IRS had forecast for the entire year.

Taxpayers who file paper returns between now and the deadline can expect refunds in about eight weeks.