Tax Filing Deadline Rapidly Approaching

Article Highlights:

• 2017 balance due payments
• IRA contributions for 2017
• Estimated tax payments for first quarter 2018
• Statute of limitation 2018 refunds

Just a reminder that the due date for 2017 tax returns is April 17, 2018! There is no penalty for filing late if you are receiving a refund. However, it is quite a different story if you have a balance due. There are two types of penalties. Late filing and late payment penalties are quite severe. Filing an extension gives you until October 15th to file and avoid the late filing penalties. However, there is no extension for paying your tax liability even if you have a valid extension to file.

In addition, the April 17, 2018 deadline also applies to the following:

• Tax year 2017 balance-due payments – Taxpayers that are filing extensions are cautioned that the filing extension is an extension to file, NOT an extension to pay a balance due. Late payment penalties and interest will be assessed on any balance due, even for returns on extension. Taxpayers anticipating a balance due will need to estimate this amount and include their payment with the extension request.

• Tax year 2017 contributions to a Roth or traditional IRA – April 17 is the last day that contributions for 2017 can be made to either a Roth or traditional IRA, even if an extension is filed.

• Individual estimated tax payments for the first quarter of 2018 – Taxpayers, especially those who have filed for an extension, are cautioned that the first installment of the 2018 estimated taxes is due on April 17. If you are on extension and anticipate a refund, all or a portion of the refund can be allocated to this quarter’s payment on the final return when it is filed at a later date. Please call this office for any questions.

• Individual refund claims for tax year 2014 – The regular three-year statute of limitations for refunds expires on April 17 for the 2014 tax return. Thus, no refund will be granted for a 2014 original or amended return that is filed after April 17. Caution: The statute does not apply to balances due for unfiled 2014 returns.

If this office is holding up the completion of your returns because of missing information, please forward that information as quickly as possible in order to meet the April 17 deadline. Keep in mind that the last week of tax season is very hectic, and your returns may not be completed if you wait until the last minute. If it is apparent that the information will not be available in time for the April 17 deadline, then let the office know right away so that an extension request and vouchers for 2018 estimated tax may be prepared if needed.

Caution: To be valid, the extension must be completed with a properly estimated tax liability using the information currently available.

If your returns have not yet been completed, please call right away so that we can schedule an appointment and/or file an extension if necessary