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Be sure you understand the “timely mailed = timely filed” rule.

Author: Keith Huggett

The IRS considers a paper return that’s due April 15 to be timely filed if it’s postmarked by midnight on April 15. But dropping your return in a mailbox on the 15th may not be sufficient.

For example, let’s say you mail your return with a payment on April 15, but the envelope gets lost. You don’t figure this out until a couple of months later when you notice that the check still hasn’t cleared. You then refile and send a new check. Despite your efforts to timely file and pay, you’re hit with failure-to-file and failure-to-pay penalties totaling $1,500.

To avoid this risk, use certified or registered mail or one of the private delivery services designated by the IRS to comply with the timely filing rule, such as:

• FedEx Priority Overnight
• FedEx Standard Overnight
• FedEx 2Day
• UPS Next Day Air Saver
• UPS 2nd Day Air
• UPS 2nd Day Air A.M.

Beware: If you use an unauthorized delivery service, your return isn’t “filed” until the IRS receives it. For example, DHL is no longer an authorized delivery service.

If you’re concerned about meeting the April 15 deadline, another option is to file for an extension. We can help you determine if that makes sense for you. Time is running out, contact us today

There is Still Time...

Author: Jenny Shilling

The filing deadling is today, April 15, 2014. If you owe taxes to the federal government, today is they last day to pay them before you start acruing penalties.  If you haven't filed your taxes by now you are still able to send in IRS form 4868 to get a six month extension to file your taxes until midnight tonight.  Thanks to the IRS e-file options, filing this form is easier than ever.

To get an extension of time to file your taxes, you need to fill out IRS form 4868 by April 15th. This form requires specific information including your name, social security number, your spouse's name and ssn, address, and income information.  This form is available from the IRS website.

IRS Form 4868 does not extend your time to pay the IRS.  It only provides an extension of time to file your tax return.  If you owe the IRS taxes, you must make your payment before April 15th or you will begin to accrue penalties at 0.5% per month or part of a month on April 16, 2014.

There are times when special circumstances grant you an automatic extension to filing your tax return. If you are a U.S. citizen or resident alien and on April 15th you are:

• Living outside the U.S. and Puerto Rico and your main place of business or post of duty is outside the U.S. and Puerto Rico; or

• On duty outside the U.S. and Puerto Rico for military or naval service.

If you qualify for these special circumstances you have until June 16th to file your tax return.  You must include a statement that explains your qualification with your tax return.

The deadline for filing tax returns and paying taxes is automatically extended if:

• You serve in the Armed Forces in a combat zone or you have qualifying service outside of a combat zone; or
• You serve in the Armed Forces on deployment outside the U.S. away from your permanent duty station while participating in a contingency operation.

Your deadline is extended for 180 days past the later of:

• The last day you are in a combat zone or serving in a contingency operation; or
• The last day of any continuous qualified hospitalization for a service injury from a combat zone or contingency operation.

Although the filing deadline is here and time is quickly running out, you still have time to file for an extension if you need to.  The Tax Specialists at The Tax Office, Inc., can assist you with e-filing IRS form 4868, estimating tax payments, and filing your tax returns. Contact the Tax Office, Inc. for all of your tax requirements today.

Don't be Like the White Rabbit: Late for a Very Important Date!

Author: Jenny Shilling

Many small business owners are afraid to file for a tax extension because they think that it will increase their risk of an audit. This is one of the biggest tax preparation myths out there. The benefits of filing for an extension significantly outweigh any potential downside.

The IRS makes it easy for you or your tax preparation service to file for an extension. By submitting Form 4868 either online or through the mail, you can get up to six additional months to file your return. The key thing to keep in mind is that you do not get extra time to pay any taxes that are due -- you will need to pay those by April 15 to avoid being subject to IRS collections.

Filing for an extension has three key advantages:

1. It gives you additional time to get your information together and ensures that you not only file a complete return but also that you have time to review it so that you file an accurate return.
2. It moves tax preparation out of the first quarter. Many businesses have a lot of work to do during the first three months of the year, and with an extension, you can move all of that accounting work to a quieter period of the year.
3. It gives you more time to fund some retirement plans, such as SEPs and IRAs. These plans let you put money away on a tax-advantaged basis, but to shelter your contributions from taxes, you have to have funded them for the tax year before you file that year's return.

While the tax experts at The Tax Office, Inc can get your return filed before April 15, they can also help you take advantage of the IRS's liberal extension policies. Talk to them to find out how to make the IRS work around your schedule instead of the other way around.