july 15 - Linkenheimer LLP CPAs & Advisors

After You File Your Tax Return: 3 Issues To Consider

The tax filing deadline for 2019 tax returns has been extended until July 15 this year, due to the COVID-19 pandemic. After your 2019 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations.

1. Some tax records can now be thrown away

You should keep tax records related to your return for as long as the IRS can audit your return or assess additional taxes. In general, the statute of limitations is three years after you file your return. So you can generally get rid of most records related to tax returns for 2016 and earlier years. (If you filed an extension for your 2016 return, hold on to your records until at least three years from when you filed the extended return.)

However, the statute of limitations extends to six years for taxpayers who understate their gross income by more than 25%.

By Linkenheimer LLP|2020-09-03T20:02:19+00:00July 7th, 2020|irs, tax, tax deadlines|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

The History of April 15th and Tax Day

April 15 isn’t most Americans’ favorite day, and that’s because most years, it’s the official, federal tax deadline (for the first time in 65 years, tax day now falls on a different day, July 15, 2020) . Tax Day, as it’s called, has a long and interesting history in the States that goes all the way back to Abe Lincoln’s leadership. Federal income tax was introduced with the Revenue Act of 1861 to help fund the Civil War, and subsequently repealed, re-adopted, and held unconstitutional. The early taxes were based on assessments, not voluntary tax returns. Tax payment dates varied by act.

1861: The First Federal Income Tax

Abraham Lincoln, who was an American president from 1861 to 1865, proclaimed the first federal income tax his first year in office. 1861—particularly August 5—is the historical day that marks the future-changing decision. At the time, Lincoln announced a 3% tax rate for anyone who made over $800 a year (roughly $24,000 with today’s inflation). The decision was made to help fund the Union’s efforts during the civil war. Though we are still being taxed today, Lincoln’s tax system was repealed in 1871.

1894: Tariff Act of 1894 Rules […]

By Linkenheimer LLP|2020-09-03T20:03:05+00:00April 15th, 2020|irs, Linkenheimer, New Tax Laws, tax deadlines|0 Comments

Tax Filing and Payment Extension Due To The Coronavirus

The IRS moved the national income tax filing day ahead to July 15, three months after the normal deadline for Americans to send in their returns, in an effort to stem the financial pain from the coronavirus pandemic.

This relief includes:

Individuals: Income tax payment and filing deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment and filing extension relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief. This relief also includes estimated tax payments for the tax year 2020, normally due April 15.

Corporations: For C Corporations, income tax payment and filing deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.

This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.

California: The Franchise Tax Board is postponing until July 15 the filing and payment […]

By Linkenheimer LLP|2020-09-03T20:03:15+00:00March 20th, 2020|New Tax Laws, tax deadlines|0 Comments