October 15th Extension Due Date Rapidly Approaching

October 15th Extension Due Date Rapidly Approaching

• October 15th is the extended due date for filing 2014 federal individual tax returns.
  
• Late-filing penalty for individual federal returns is 5% of the tax due for each month, or part of a month, for which a return is not filed, up to a maximum of 25% of the tax due. A separate penalty applies for filing a state return late.
  
• Interest on tax due.
  
• Final opportunity for business or rental property owners to adopt the new repair and improvement regulations retroactively.

If you could not complete your 2014 tax return by the normal April filing due date, and are now on extension, that extension expires on October 15th, 2015, and there are no additional extensions. Failure to file before the extension period runs out can subject you to late-filing penalties.

There are no additional extensions, so if you still do not or will not have all of the information needed to complete your return by the extended due date, you should contact your Tax Professional’s office so they can explore your options for meeting your October 15th filing deadline.

If you are waiting for a K-1 from a partnership, S-corporation, or fiduciary return, the extended deadline for those returns was September 15. So, if you have not received that information yet, you should probably make inquiries.

Did you know that late-filed individual federal returns are subject to a penalty of 5% of the tax due for each month, or part of a month, for which a return is not filed, up to a maximum of 25% of the tax due. If you are required to file a state return and do not do so, the state will also charge a late-file penalty. The filing extension deadline for individual returns for most states is also October 15th.

If you operate a business or have rental properties, October 15th is also the final deadline for adopting new capitalization and repair regulations retroactively by filing IRS Form 3115, Application for Change in Accounting Method, which will allow you to expense items on your 2014 return that were capitalized (depreciated) in prior open years that are now allowed to be expensed under the new regulations. If you’ve already filed your 2014 return, it can be amended to adopt the new capitalization and repair regulations, but the amended 2014 return will need to be filed by October 15th. If the new regulations are not adopted retroactively, they will only apply prospectively.

NOW IS THE TIME! If your Tax Professional is waiting for some missing information to complete your return, they will need that information at least a week before the October 15th due date.

Not sure what to do or have not even started the tax filing process? Tri-Valley Tax & Financial Services, Inc. can HELP!

Please call us immediately @ (925) 469-1040 if you need assistance related to filing your tax return and providing the needed information, so that a course of action may be determined for avoiding the potential penalties.