Due Date

The federal income tax returns are normally due on April 15th. This year, the 15th falls on a Sunday, so the due date should be Monday the 15th. However, Monday the 16th is Emancipation Day so the due date is Tuesday 17th. Some people aren't prepared to file. Others may be waiting for Form K-1's from their investments. Either way, if the return is not filed on time, an extension will need to be filed.

Federal Extension

An extension is filed by completing Form 4868. The extension will allow six months, or until October 15th to file the return. The extension will extend the time to file the return, it does not extend the time to pay the tax. Any tax that is due needs to be paid by April 17. Failure to pay by the due date will result in penalties and interest being assessed. more…

1) Don't panic. The returns are due on April 17th this year. This is due to April 15th falling on the weekend and April 16th being a holiday in Washington DC. If you can't get your return completed and filed on time, file an extension. The federal form is 4868 and the Connecticut form is CT-1040-EXT. This will allow you until October 15th to file. The extension however only extends the time to file, it does not extend the time to pay. Any tax due needs to be paid with the filing of the extension.

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On TLC's What Not to Wear Stacy and Clinton give a 'make over' to some lady that is, well…not dressed so well… Taxpayers that are being audited need to make sure they are putting their best foot forward right at the start of an IRS audit.

Field, Office and Correspondence Audits

The first thing a taxpayer needs to understand is The Difference Between an IRS Field Office and Correspondence Audit. If it is a correspondence audit, it doesn't matter how you are dressed. All of the communication with the IRS will be done through the mail. It appears that more audits will be correspondence audits due to the IRS wanting to allocate its resources. Depending on the situation, this may not be in the taxpayer's best interest. They may actually prefer to meet with the IRS to, "tell their story." You should carefully review your situation with your CPA to see if meeting the auditor would make more sense. more…

The Biggest Loser is a TV show where contestants attempt to lose the most weight for cash prizes. Full Disclosure: I don't watch the show and I have only seen short clips of it. I don't proclaim to fully understand the show. It appears to me however the biggest loser has nothing to do with losing weight. It's the self-employed in Connecticut. They are losing far too much to income taxes. And they certainly aren't getting any cash prizes for it. For this discussion, the self-employed include sole proprietors, single member limited liability companies ("LLC's) and partners in partnerships. It does not include owners of "C" Corporations or Subchapter S Corporations.

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1) Visit the Connecticut Department of Revenue Services Website

2) Call the Department at (800) 382-9463 (within Connecticut but outside Hartford area) or at (860) 297-5962 (from anywhere) from 8:30 AM to 4:30 PM

3) Visit the Department in Hartford

4) Go to local public libraries, town halls and post offices during tax season

ACTION ITEM: Connecticut taxpayers have several sources to access the forms they may need. Better act fast…April 17 will be here before you know.

Thomas F. Scanlon, CPA, CFP®