[ad_1]
Like December 7, April 15 for many is “a date which will live in infamy.” It’s Tax Day in most of the U.S. Calendar-year partnerships and S corporations were required to file their 2023 returns, along with Schedule K-1s for owners, on March 15, 2024, or obtain an extension. Now, the filing deadline for owners of these pass-through entities is approaching. Here are 5 last-minute reminders to help you meet your tax obligations and avoid penalties, interest, and IRS scrutiny.
1. Check your filing deadline.
April 15th is the due date for the 2023 federal income tax return. But the deadline is April 17 if you are in Maine or Massachusetts. And if you are in an area in which a federal disaster has been declared, you may have more time. Check for tax relief in these areas by date from the IRS. For example, individuals and businesses affected by the Hawaii wildfire that occurred on August 8, 2023, have until August 7, 2024, to file 2022 returns that were on extension to October 15, 2023, as well as 2023 income tax returns (an initial extension to February 15, 2024, has been extended). Also check state income tax return deadlines where applicable.
2. Watch deadlines for post-year-end actions.
The deadline for making contributions to IRAs and Health Savings Accounts for 2023 is the tax filing deadline (see tip #1). This deadline applies even if you obtain an extension of time to file your return. But the deadline for contributing to a qualified retirement plan, such as a SEP, is the deadline for your return, including
3. Report items as they’re reported to you.
If you have an interest in a partnership or S corporation, be sure to report on your personal return the amounts correctly from Schedule K-1. IRS computers will be looking to cross-check the information; so avoid transposing numbers or other errors. If you think an item reported to you is incorrect, but the business won’t change it and issue a corrected Schedule K-1, you can file Form 8082. This is a notice of inconsistent treatment—your return won’t square with the K-1. But filing this form puts the IRS on alert and essentially invites the Service to look at your return.
4. Pay estimated tax if needed.
If you expect to owe at least $1,000 in federal income taxes for 2024, you may need to pay estimated taxes in four installments. The first installment is due April 15 (April 17 in Maine or Massachusetts or longer in a designated disaster area). Find more information about making estimated tax payments in the package for Form 1040-ES.
5. Get a filing extension if you need one.
If, for ANY reason, you can’t make the filing deadline, just ask for an extension by that deadline. You get it automatically. Individuals use Form 4868. As instructions to the form say:
There are 3 ways to request an automatic extension of time to file a U.S. individual income tax return.
You can pay all or part of your estimated income tax due and indicate that the payment is for an extension using your bank account; a digital wallet such as Click to Pay, PayPal, and Venmo; cash; or a credit or debit card.
You can file Form 4868 electronically by accessing IRS e-file using your tax software or by using a tax professional who uses e-file.
You can file a paper Form 4868 and enclose payment of your estimate of tax due (optional).
Obtaining a filing extension does not extend the time for payment. Pay what you expect to owe, or as much as you can, to minimize or avoid underpayment penalties.
Final thought
Taxes are serious matters, but this doesn’t have to get you down. Here are 5 jokes from Parade about taxes to lift you up:
I tried paying my taxes with a smile…but they still demanded cash.
Why are taxes like golf? Because you work hard on the green just to end up in the hole.
What does the pessimistic accountant think? It’s accrual world.
What sort of taxes do marijuana dispensaries file? Joint returns.
When you spell out “THE IRS,” it looks a lot like “THEIRS.”
[ad_2]
Source link
