Time to review a few things before tax season. More Posts coming as congress approves or dis-approves new tax laws - which usually happens the last day of the year.
Many of you file extensions. Extensions extend the time to FILE your tax return. IF you have a tax return that is due March 15th, (Corporation or other business) then your extension needs to be filed by September 15th. IF you do not file the the extension deadline it is the same as failing to file and penalties will get insane. Your personal tax return is due April 15th and the extension deadline is October 15th. Believe it or not the IRS ihas published changes to some due dates, primarily for businesses but not for almost 10 years. The Good LORD willing I will keep you posted.
YOU MUST HAVE ALL TAXES PAID BY APRIL 15th TO AVOID ALL PENALTIES AND INTEREST. WHILE NOT SEVERE THEY DO ADD TO YOUR TAX BILL.
ESTIMATED TAX PAYMENTS
This is usually for people that have self employment income, or pension and investment income that have no withholding taxes. In a nut shell if you owed $4,000 last year then you should make 4 estmated tax payments of $1,000 each for next year. There are some exceptions to this but I will discuss those exceptions at tax time with anyone who owes tax. There is a penalty for not paying estimates and I know many of you believe that keeping the money in your business will give you a greater return on that money then paying your taxes in advance and letting the money sit with the government interest free but that is the rule. Estimates are paid quarterly and we can adjust the amount due according to your income during the year.
For more information on these topics and any questions Please call the office.