April 8, 2001, 10:45PM

                           Learn the ins and outs of filing after mid-April 
deadline 

                           By GARY KLOTT 
                           Tribune Media 

                           For the many millions of individuals who have yet 
to file their 2000 income tax returns, there is no
                           reason to panic. 

                           If you need more time to file your return, you can 
easily get a filing extension. 

                           And if you can't afford to pay your tax bill now, 
you can buy more time to pay up. While you may be
                           subject to interest and penalties for payments 
made after April 16, you can put off the day of
                           reckoning for months without fear that IRS 
collection agents will come after you. There is even a
                           loophole in the law that will enable many 
individuals to get an extra month to pay up without being
                           assessed interest or penalties. 

                           Nevertheless, April 16 is a critical deadline for 
anyone who has yet to file his tax returns. You'll need
                           to file either your tax return or an extension 
request by the deadline. And to avoid interest and
                           penalties, you'll generally need to pay any taxes 
owed by April 16. 

                           April 16 is also the deadline for making IRA 
contributions for 2000 returns and for making the first
                           installment of quarterly estimated taxes for 2001. 

                           Filing extension: If you'd like more time to file 
your return, getting a filing extension is simple. In fact,
                           the IRS has expanded the options this year for 
obtaining a filing extension. You can now do it by
                           phone, computer or mail. 

                           The traditional way to get an extension is to fill 
out IRS Form 4868, "Application for Automatic
                           Extension of Time to File U.S. Individual Income 
Tax Return" and mail it to the IRS by the April 16
                           deadline. If you're using tax-preparation software 
or a tax professional, you can file your extension
                           request by computer. Or you can phone in your 
extension request by calling 888-796-1074. 

                           If you owe the IRS money, another option for 
requesting an extension is to make the payment by
                           credit card (American Express, Discover or 
MasterCard) on the Internet or by phone through one
                           of the two companies the IRS has authorized for 
processing credit card payments. Details on the
                           option are included in the Form 4868 instructions. 

                           By making the extension request, the IRS will 
automatically give you four more months, until Aug.
                           15, to file your return. 

                           You can get an extension for any reason. No 
explanation is asked for when requesting an extension. 

                           But be aware that your extension request only 
gives you extra time to file your return, not to pay
                           your taxes. To avoid interest and possible penalty 
charges, you must estimate how much you owe
                           and make the payment with your extension request 
by the April 16 deadline. 

                           Unable to pay: If you can't afford to pay your tax 
bill, you should at least file an extension request by
                           the April 16 deadline. 

                           Though you'll be subject to interest and possible 
penalty charges for late payment of your taxes,
                           you'll avoid being hit with a late-filing penalty, 
which runs a steep five percent a month (up to a
                           maximum 25 percent.) 

                           Installment plan: If you still don't have the cash 
to pay your taxes by the time your extension runs out
                           on Aug. 15, you can negotiate with the IRS to pay 
your balance due in monthly installments. You
                           make the request for an installment agreement when 
you file your completed tax return using Form
                           9465, "Installment Agreement Request." 

                           "Offer in compromise": If you can't afford to pay 
all you owe in taxes, even in installments over a
                           period of years, you may be able to work out a 
settlement with the IRS. The IRS recently expanded
                           its "Offer in Compromise" program, in which 
taxpayers in tough financial situations can offer to settle
                           for less than they owe. Offers are submitted using 
IRS Form 656, "Offer in Compromise." 

                           A loophole offers an extra month to pay up: If all 
you need is an extra month or so to come up with
                           the cash to pay your tax bill, there is a way you 
may be able to get a short reprieve without being
                           subject to interest or penalties. 

                           All you need do is take the IRS up on its offer to 
calculate your tax bill for you. 

                           If you're eligible for the offer, fill out your 
tax return, stopping short of computing certain totals, and
                           send it in by April 16. The IRS will compute your 
tax and send you a bill for any tax owed. If you
                           pay within 30 days of the notice, you won't be 
assessed any penalties or interest. 

                           To take advantage of the loophole, your taxable 
income must be less than $100,000 and you can't
                           itemize deductions. The full list of eligibility 
requirements and step-by-step instructions are contained
                           in IRS Publication 967, "The IRS Will Figure Your 
Tax." 

                           Retirement account contributions: If you hope to 
contribute to an Individual Retirement Account, the
                           final deadline for 2000 tax-year contributions is 
April 16, even if you obtain a filing extension. 

                           The deadline is more flexible for self-employed 
retirement plans. Contributions to Keogh or
                           Simplified Employee Pension (SEP) plans can be 
made up until the due date of your return, which
                           can be later than April 16 with a filing 
extension. 

                           Estimated tax deadline: For self-employed workers 
and other individuals who need to make
                           quarterly estimated tax payments to the IRS, April 
16 also is the deadline for making the first
                           installment for 2001.