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Archive for the ‘TaxDay’ Category

IRS Filing Deadline Has Not Been Extended

Posted by taxguru on March 18, 2020

As is all too common, there is a lot of misinformation being reported by the media regarding the comments by the Treasury Secretary, Steven Mnuchin.  This has already led to widespread confusion among clients and the public at large.

For the past week, I was fully expecting to be able to write a headline that Tax Day was extended to July 15, which is what was widely speculated by the AICPA and other tax pros.

However, yesterday’s comments by Mnuchin were not as simple as giving everyone an additional 90 days (July 14) to file their 2019 income tax returns, or extensions.  What was actually announced was a 90 day grace period for paying taxes due for 2019, from the normal April 15 deadline to July 14, for up to one million dollars of taxes for individuals.  Tax returns or extensions still need to be submitted to IRS by April 15.

This interest free payment extension doesn’t give the level of stress reduction that was advertised.  Preparing tax returns and extensions is still a hassle that is added to the current extreme pressures from all of the closings, layoffs and cancelations around the country.  Idiotic is the word that comes to mind.

I am hopeful that there will be a great deal of push-back to this ridiculous plan and our rulers in DC do the right thing before April 15 and just set the filing date for 2019  tax returns and extensions as July 15. 

Posted in extensions, IRS, TaxDay | Comments Off on IRS Filing Deadline Has Not Been Extended

Virus Extends Filing Deadlines

Posted by taxguru on March 13, 2020

For the past several days, there has been a lot of speculation that all of the disruption surrounding the nationwide panic over the Wuhan Virus would motivate IRS to officially extend the upcoming filing due dates for 2019 income tax returns; March 16 for 1120S (S-corps) and 1065s (LLC & partnerships) and April 15 for personal (1040), trusts (1041) and Gift Tax (709) returns.  With today’s declaration by the President of a National Emergency, that should be a certainty.  However, no official announcement has yet been made by IRS on their news page.

Normally in situations of large disasters and emergencies, IRS is the first to issue such filing extensions so that affected people can focus on dealing with their more pressing problems.  The State tax agencies then usually follow suit with their own announcements of filing extensions.  Some States, such as California, have a policy of automatically complying with any IRS sanctioned extension of filing deadlines.  In the current situation, the Calif Franchise Tax Board (FTB) has beaten IRS to the punch and has issued its own press release giving a new due date of June 15 for all tax returns that are due March 16 and April 15.  

This is different from a normal extension that taxpayers file, because that kind is only for requesting an extension of time to file the tax returns.  It is not an extension of time for paying the taxes owed.  Penalties and interest are assessed on late payments of taxes, while the normal extension avoids the much more expensive late filing penalties.  This new emergency related extension allows all Calif. taxes for 2019 to be paid up until June 15 without any additional charges for penalties or interest. 

Whether this June 15 date will stick as the due date will obviously depend on how long it takes for the panic in the country to subside and things to get back to normal.  If the virus scare stretches out for months and months. there is a possibility that the June 15 due date will itself be extended.

I intend to add to this post as news comes out, including the anticipated IRS announcement, as well as any by other States.

This is definitely going to be another very strange Tax Season.

[Update 3/14/2020] – Still no official announcement from IRS.  The U.S. Tax Court has announced that it has cancelled all of its March and April trials, which will really back things up for them.

[Updates 3/15/2020] – Still no official announcement from IRS. I’ve seen some mentions that any delay in deadlines requires an act of Congress, which makes no sense.  For the past several years, whenever there has been a presidentially declared disaster or emergency, such as from hurricanes and tornadoes, IRS has been pretty quick to announce official extensions of time to file returns for those in the affected areas, without any congressional action. On March 6, IRS announced an extended filing deadline of July 15 for those in the vicinity of the Nashville Tennessee tornadoes. This current virus panic is the same kind of thing, although on a much larger geographic scale, the entire country.

Some free tax assistance services, such as AARP’s Tax-Aide, have announced they have shut down due to this current health scare.  Seeing as how the affects of this virus are supposed to be much more dangerous for us older folks, that does seem to be a very prudent move.  As I have had to constantly remind clients, whenever it is necessary to prioritize between tax and health matters, health should always be first in line, with or without any official IRS permission.

Posted in Calif, extensions, IRS, TaxDay, TaxSeason | Comments Off on Virus Extends Filing Deadlines

Tax Day is April 17 This Year

Posted by taxguru on January 9, 2018

Everyone has long recognized April 15 as the official tax return filing and payment deadline because it’s been beaten into our heads for all of our lives.  It signifies the official end of the year’s fifth season, Tax Season.  However, because of the calendar, with weekends and an obscure holiday that is only recognized in the nation’s power center, it’s been a number of years since the deadline has actually fallen on April 15.

That’s the case once again for 2017 individual income tax returns (1040) according to this recent press release from IRS.

April 17 Filing Deadline
The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15 date. In 2018, April 15 falls on a Sunday, and this would usually move the filing deadline to the following Monday – April 16. However, Emancipation Day – a legal holiday in the District of Columbia – will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 17, 2018. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.

Posted in TaxDay | Comments Off on Tax Day is April 17 This Year

Another April 18 National Tax Day

Posted by taxguru on December 11, 2016

Practically forever, everyone in the US has associated April 15 with the dreaded income tax deadline.  It’s become such a part of our culture that it is treated as a sick kind of holiday that fosters celebrations and business sales of the kind we see for other more traditional holidays.

For the second year in a row, the calendar and a special Washington DC holiday have aligned so that we have a little longer before 2016 individual income tax returns are due.  As IRS has announced in an official press release, Tuesday, April 18, 2017 will be the magic day for 2016 1040s. 

Most States automatically synchronize their due dates with IRS’s, but you should check with your own State’s tax agency to be certain.

For this coming tax return filing season, there are also going to be several other new due dates for 1099s, 1065s, 1120s and various other types of tax returns.  I will be posting more details on these new deadlines in the next few weeks. 

   

Posted in TaxDay | Comments Off on Another April 18 National Tax Day

2016 Tax Day Is April 18

Posted by taxguru on March 16, 2016

I have heard several people proclaim that we are now less than a month away from the dreaded April 15 deadline.  Not quite.

It may not seem like a big deal to most people, but for those of us in the Tax Season trenches, three more days can ease a lot of pressure. 

2016TaxDay

Posted in TaxDay | Comments Off on 2016 Tax Day Is April 18

Tax Day is April 18 this year

Posted by taxguru on January 15, 2016

Once again, DC’s special Emancipation Day holiday results in a little extra time for individuals to file their 1040s.

IRS chief Koskinen sets April 18 filing date; promises better service on information lines

We do need to remember Commissioner Koskinen’s poor record for truthfulness with his congressional testimony (aka Perjury).  I do believe him with the April 18 filing deadline, but have serious doubt about his claims of better taxpayer service.

Posted in IRS, TaxDay | Comments Off on Tax Day is April 18 this year

Another type of “Spring Break”

Posted by taxguru on April 18, 2015

Tax Break from Funny or Die.

 

 

Posted in humor, TaxDay, video | Comments Off on Another type of “Spring Break”

Discussing our screwed up tax system

Posted by taxguru on April 9, 2015

PJ Media has posted this 24 minute panel discussion on the abhorrent state of our tax system, with the very accurate title of Death By Taxes: The US Income Tax Is Government Theft.

It’s the perfect thing to watch as the infamous Tax Day approaches in this country.

 

As always, the media are flooded with last minute tax tips. Here’s the best tip if your tax returns aren’t already finished.  Work with a professional tax practitioner and file an extension (Form 4868) that will give you six more months to properly prepare and file your tax returns.  Trying to rush things together at the last minute is a recipe for disaster, often with mistakes that can’t be undone later on.

TaxCoach Software: Are you giving your clients what they really want?


Posted in TaxCode, TaxDay, TaxReform | Comments Off on Discussing our screwed up tax system

0baMao Loves Tax Day

Posted by taxguru on April 15, 2013

Another member of the Bush family pokes fun at our imperial ruler and his favorite day of the year.

 

 

Posted in TaxDay, video | Comments Off on 0baMao Loves Tax Day

Another name for Tax Day

Posted by taxguru on April 17, 2012

From today’s episode of NewsBusted.

 

Posted in TaxDay, video | Comments Off on Another name for Tax Day