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…

Here are 4 ways to Help Your CPA and Reduce Your Taxes:

1) Have a Year End Planning Meeting with Your CPA

This meeting can be in person or over the phone, it really doesn't matter.  The only thing that matters is that it happens.  Most individual income taxpayers are on the cash basis.  This means, with some limited exceptions, for a taxpayer to take advantage of a tax strategy, it needs to happen in that tax year. This is where most of the heavy lifting is done, with the tax planning.    more…

Form 709, is required to be filed if a gift is made to someone for more than $13,000 in one year.  Gifts between spouses are not required to file.  Gifts can be made to an unlimited number of people in a year provided they are below the $13,000 per person annual exclusion. more…

The statute of limitations limits the time during which an action can be brought by the IRS for an audit and the time for IRS tax collection activities.  Generally, there is a 3-year period for the IRS to give you a refund, three years to audit your tax return, and ten years to collect any tax due. more…

It’s that time of year again….time to file your income tax return.

What if you can’t get it done or don’t have all of your material to prepare it?

File for an extension.

To file an extension, complete Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.  This must be completed and filed by the due date, April 18, 2011. The extension is granted automatically if it is filed completely and on time.  The extension is for six months and allows for the returns to filed up until October 17, 2011. more…