TagFederal Income Tax

IRS Extends Tax Day to May 17

By: Amanda Wilson

The Internal Revenue Service provided individual taxpayers with a nice St. Patrick’s Day surprise by announcing that the tax deadline for individuals had automatically been extended from April 15, 2021 to May 17, 2021, due to the coronavirus pandemic.

Individuals will automatically receive the federal income tax extension and do not need to make any extension filings. No interest or penalties will accrue on amounts that taxpayers extend from April 15, 2021 to May 17, 2021.

It should be noted that this extension only applies to federal income tax returns, and individuals should check their state and local tax authorities to see if an extension is necessary.

Even With Extension, You Have to Pay Your Taxes Today!

By: Amanda Wilson

You only have to turn on your radio, TV, or log onto social media today to be reminded that today is the dreaded TAX DAY. If you find yourself in the position of seeking an extension to file your taxes, do not forget that you must still pay your taxes today. The extension only gives you extra time to file your return, it does not extend the deadline for paying.

April 15th Offers an Important Tax Planning Opportunity for Partners

By:  Amanda Wilson

April 15th is usually greeted with dread as tax day.  However, April 15th also offers an important tax planning opportunity for partners in partnerships (including limited liability companies that are treated as partnerships for federal income tax purposes).  The tax rules allow partners to amend their partnership agreement retroactively to January 1 of the prior year if the amendment is in place by April 15th.  If your business has a partnership, this might be a great opportunity for you.  You should take a moment to look at how your partnership is allocating taxable income and losses to the partners in 2013 and make changes if a different allocation would work better for your partnership.  Act fast, though, because unlike the due date for filing your return, this deadline cannot be extended.


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