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Keep These 3 Issues in Mind After You File Your Return

The tax filing deadline for 2023 tax returns was April 15 this year. If you filed for an extension, you have until October 15. In either case, once your 2023 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations.

1. Waiting for your refund? You can check on it

The IRS has an online tool that can tell you the status of your refund. Go to irs.gov and click on “Get your refund status” to find out about yours. You’ll need your Social Security number or Individual Taxpayer Identification Number, filing status, and the exact refund amount.

2. Throwing away tax records

You should hold on to tax records related to your return for as long as the IRS can audit your return or assess additional taxes. The statute of limitations is generally three years after […]

By Linkenheimer LLP|2024-04-22T18:12:18+00:00April 22nd, 2024|tax deadlines, tax planning|0 Comments

For California Storm Victims, IRS and California FTB Postpones Tax-Filing and Tax-Payment Deadline to November 16th.

This morning, the IRS extended tax deadlines for most California residents to Nov. 16, 2023, due to recent natural disasters. This relief covers multiple 2022 tax returns, payments, and other time-sensitive actions, and it automatically applies to taxpayers in the affected counties without the need for contacting the IRS. The California Franchise Tax Board today confirmed that most Californians have until November 16, 2023, to file and pay their tax year 2022 taxes to avoid penalties. More information here on CA FTB updates.

Most individuals and businesses in California will now have until Nov. 16 to file their 2022 returns and pay any tax due. Fifty-five of California’s 58 counties—all except Lassen, Modoc and Shasta counties—qualify. IRS relief is based on three different FEMA disaster declarations covering severe winter storms, flooding, landslides, and mudslides over a period of several months.

The IRS normally provides relief, including postponing various tax filing and payment deadlines, for any area designated by the Federal Emergency Management Agency (FEMA). As long as their address of record is in a disaster-area locality, individual and business taxpayers automatically get the extra […]

By Linkenheimer LLP|2023-10-18T20:25:07+00:00October 16th, 2023|irs, tax deadlines|0 Comments

It’s Almost That Time of Year Again! If You’re Not Ready, File for an Extension

The clock is ticking down to the April 18 tax filing deadline. Sometimes, it’s not possible to gather your tax information and file by the due date. If you need more time, you should file for an extension on Form 4868.

An extension will give you until October 17 to file and allows you to avoid incurring “failure-to-file” penalties. However, it only provides extra time to file, not to pay. Whatever tax you estimate is owed must still be sent by April 18, or you’ll incur penalties — and as you’ll see below, they can be steep.

Failure to file vs. failure to pay

Separate penalties apply for failing to pay and failing to file. The failure-to-pay penalty runs at 0.5% for each month (or part of a month) the payment is late. For example, if payment is due April 18 and is made May 25, the penalty is 1% (0.5% times 2 months or partial months). The maximum penalty is […]

By Linkenheimer LLP|2022-03-29T23:24:33+00:00March 29th, 2022|extension, extensions, irs, tax deadlines|0 Comments

Businesses: Get Ready For The New Form 1099-NEC

There’s a new IRS form for business taxpayers that pay or receive nonemployee compensation.

Beginning with tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee.

Why the new form?

Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600 in a calendar year for services performed in a trade or business by someone who isn’t treated as an employee. These payments are referred to as nonemployee compensation (NEC) and the payment amount was reported in box 7.

Form 1099-NEC was reintroduced to alleviate the confusion caused by separate deadlines for Form 1099-MISC that report NEC in box 7 and all other Form 1099-MISC for paper filers and electronic filers. The IRS announced in July 2019 that, for 2020 and thereafter, it will reintroduce the previously retired Form 1099-NEC, which was last used in the 1980s.

What businesses will file?

Payers of nonemployee compensation will now use Form 1099-NEC to report those payments.

Generally, payers must file Form 1099-NEC by January 31. For 2020 tax returns, the due date will be February 1, 2021, because January 31, 2021, is on a Sunday. There’s no […]

By Linkenheimer LLP|2020-09-03T20:02:16+00:00July 14th, 2020|business, extension, extensions|0 Comments

California Tax Updates for July 2nd

Post 1:

Businesses that hold unclaimed property in California get extra time to file reports. Due to COVID-19, the CA State Controller (SCO) has postponed the due date for holders of such property, including unclaimed wages, to submit their Remit Reports and Remittances for properties reported on their 2019 Notice Reports. Regarding the June 1-15 period for holders to submit their reports and remittances for properties reported on 2019 Notice Reports is extended from June 1, 2020, to August 15, 2020. Holders or agents of holders who are able to submit their Remit Reports and remittances during the original reporting period are encouraged to do so. Contact your Linkenheimer CPA with questions.

Post 2:

As Tax Day approaches, the Franchise Tax Board offers tips to help Californians prepare to file by the July 15 deadline. Among other things, the tips include the following: COVID-19 relief […]

By Linkenheimer LLP|2020-09-03T20:02:21+00:00July 2nd, 2020|california, tax deadlines|0 Comments