QUESTION: I have a large payment to make on my 2010 income tax return and you told me to pay it as late as 4/15/11. If I pay it on 4/15/11, the IRS will receive it after 4/15/11 so how can I prove the payment was made on time?

ANSWER: I recommend mailing it by U.S. certified mail. Under Regulation 1.7502-1(c)(2), your receipt is postmarked by the postal employee to whom the letter is presented and this receipt is proof of timely payment.

Feel free to contact me if you or someone you know has this type of situation. Financial Planning and tax planning advice presented here is general in nature, and individual circumstances make applying these general rules tricky; thus, the above answer cannot be applied to all circumstances because the slightest variation could cause a different outcome.