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Why Were California Returns Extended Again from May to October? (A Theory) May 8, 2023
Back in January, severe winter storms impacted California. Much of the state was declared a federal disaster area; these declarations are always county-by-county. As of today, only two counties in California (both in the northeastern corner of the state) are not federal disaster zones. The IRS rightly extended tax filing deadlines from April 18th to […]
Russ
Why You Use Certified Mail When Mailing Items to Tax Agencies April 26, 2023
My mother passed away last year (after a long and fruitful life). I filed her final tax returns–and money was due to both the IRS and California. I could not use IRS Direct Pay, nor could I have the funds debited from my bank account; thus, I mailed checks (and vouchers) to the tax agencies. […]
Russ
Bozo Tax Tip #1: Everyone Gets the Employee Retention Credit, Right? April 14, 2023
“Russ,” a client began, “Don’t I qualify for that Employee Retention Credit (ERC) that I keep hearing about?” I told him he didn’t–his business grew during the Pandemic and he didn’t meet the requirements. Yes, it’s not free money for everyone–you had to qualify: Eligible taxpayers can claim the ERC on an original or amended […]
Russ
No Foolin’: New York State Not Conforming to IRS Extension for Blizzard Disaster Zones April 1, 2023
The New York State Department of Taxation and Finance decided not to extend taxpayers impacted by the December blizzards to May 15th; impacted taxpayers still must either file their tax returns by April 18th or file a valid extension (meaning paying 90% of the tax due). In order to file a New York return, you […]
Russ
Mississippi Counties Impacted by Tornadoes Have Until July 31st to File March 28, 2023
The IRS announced this morning that four Mississippi counties impacted by tornadoes have until July 31st to file. The extension, for Carroll, Humphreys, Monroe, and Sharkey counties, covers all tax forms and estimated tax payments due between now and July 30th for both business and individual returns. I would expect the Mississippi Department of Revenue […]
Russ
Certain New York Storm Victims Get an Extra Month to File with the IRS March 24, 2023
The IRS announced today that individuals (and businesses) in five New York counties have an extra month (to May 15th) to file and pay tax returns; this relates to the winter storm that hit between December 23rd and December 28th. The five counties are Erie, Genesee, Niagara, St. Lawrence, and Suffolk; the primary areas impacted […]
Russ
Today Is the Partnership & S-Corporation Deadline March 15, 2023
You know what today is, right? Yes, the Ides of March–and the US tax filing deadline for partnerships and S-Corporations. If your entity isn’t ready to file, download Form 7004 (the extension request) and mail it using certified mail today. The deadline is a postmark deadline so it doesn’t matter when your extension is received–but […]
Russ
California (Franchise Tax Board) Conforms to Extension to October 16th March 3, 2023
The Franchise Tax Board announced late yesterday that California is officially conforming to the IRS extension until October 16th for all tax returns due from January 10th through October 15. Almost all of California is covered by the extension; only Imperial, Kern, Lassen, Modoc, Plumas, Shasta, and Sierra counties are not covered. (The largest cities […]
Russ
FBAR Non-Willful Penalty Is Per Report, Not Per Account February 28, 2023
Let’s assume you have a non-willful violation of filing the FBAR (Form 114, the Report of Foreign Bank and Financial Accounts). Is the maximum penalty ($10,000) per account or per report? The Circuit Courts of Appeal had split on this question; the Supreme Court decided this issue in Bittner v United States today. [T]he question […]
Russ
IRS Extends California (and Alabama and Georgia) Disaster Areas to October 16th from May 15th February 24, 2023
The IRS announced today that most California taxpayers (most of the state is in a disaster zone from flooding in January) now have until October 16th to file any tax returns. This also means that impacted taxpayers have until October 16th to make 2022 contributions for IRAs and HSAs. Additionally, 4th quarter 2022 and 1st […]
Russ