Last Minute Tips – 2017 Returns

Today TaxMama® wants to give you some last minute tips on the drop-dead filing deadline – October 15th.     

 

 

 

 

Dear Family,

For most people – and C corporations – October 15th is the final filing deadline for the 2017 tax returns. Partnerships, S corps, trusts, all pass-through entities, were due on either September 15th (Forms 1065 and 1120) or October 1st (Form 1041).

For those of you still on extension, even if you’re not ready – file IMMEDIATELY. File something, even if information is missing. Not filing will cost you a 25% late filing penalty, on top of anything you might owe, plus interest on the taxes and penalties.

How do you file with missing information? Make reasonable estimates. Explain how you arrived at those estimates. You can use a Form 8275 Disclosure Statement for that purpose. Then, once you have the complete information, you can amend your tax return within 3 years.

Another alert – today’s the deadline for folks who bought business or rental assets after Sept. 27, 2017 and didn’t depreciate them fully on your tax returns. You need to file an election to NOT use the 100% depreciation deduction. (What a bizarre requirement.) If you didn’t include the election with your tax return, file an amended return TODAY. “Taxpayers who elect out of the 100-percent depreciation deduction, as well as the 50-percent deduction available under prior law, must do so by attaching a statement to a timely-filed return.” More details here. Otherwise, you will have to amend your 2017 tax return and claim the entire deduction on your asset purchases.

For folks in disaster areas, you have additional time. IRS announced the most recent grace period for Hurricane Michael. I’ll give you the list of grace periods in a moment. Just know that this additional time covers your income tax returns, payroll tax returns and any other returns that need to be filed. AND it covers payments – estimated taxes, payroll taxes and excise taxes – that would be due during this time frame.

The disaster deadlines are as follows (follow the links for details if you are affected):

  • November 30, 2018 CA-2018-11, Tax relief for victims of wildfires and high winds in Northern California
  • January 31, 2019 SC-2018-01, Tax Relief for Victims of Hurricane Florence in South Carolina
  • February 28, 2019   IR-2018-199, IRS extends Oct. 15 and other upcoming deadlines, provides expanded tax relief for victims of Hurricane Michael

Additional time is also available to active duty military personnel serving outside the U.S. You generally have until 180 days after you return back to the states. https://www.irs.gov/individuals/military

That’s it for today’s deadlines, more tips coming this week about year-end tax planning.

To make comments please drop into the TaxQuips Forum. 

And remember, you can find answers to all kinds of questions about taxes and business issues, free. Where? Where else? At www.TaxMama.com.