Today TaxMama wants to talk to you about filing deadlines and the consequences of ignoring them. 

Dear Friends,

Today is another of those tiresome deadlines. I’ve just come to realize that not everyone who is affected, understands the implications. So… If you opened up an LLC, partnership, corporation, etc. in 2010 and have not finalized your accounting – you still need to file a tax return. Even if you’re just not ready. 

Today TaxMama hears from Cliff in the TaxQuips Forum, who dropped the ball. “Filing your income tax return is due April 15th, or with an extension, 10/15. However, the instructions also say that you have three years (plus any extension) to file a claim for any refund due. Which rule takes precedence?  The IRS cannot or will not answer this question, which I’ve asked several times. If I file an extension and ensure that I am due a refund, why then does the IRS come after me and force me to file (via Notice of Deficiency letter) before the three year period is up?”

Today TaxMama hears from Judy in the TaxQuips Forum who needs help.  “I am struggling to maintain my household, have four years of back taxes to file and settle and my home was just foreclosed on. I was contacted by someone claiming that they can help negotiate a reduction in tax liability and stop any further collection by the IRS. They wanted $3,500 for this service.  I went on the Internet and found other so-called businesses advertising the same service. Can anyone help with these negotiations with the IRS and how can I know whom to trust?”

Partners’ Filing Status Varies Federal to State, and State to State

Courtesy of CCH – This article is SO important for all domestic partners to read!

(RIVERWOODS, ILL., February 11, 2011) – Whether opposite-sex or same-sex marriage, civil union or domestic partnership, your relationship can have tax consequences, according to CCH, a Wolters Kluwer business (CCHGroup.com).

These tax consequences can be both beneficial and detrimental. And, for many people – particularly those in same-sex partnerships – they can just be confounding, as federal law does not recognize same-sex marriages or civil unions while a growing number of states do. As a result, these couples often find they need to complete taxes one way for their federal income tax returns and another for their states tax returns.