What planet are we on? We made it through another tax season. April 15th was unbelievable and I found myself standing in line at the post office on April 14th - no fun.
On April 16th, I sleep most dial up web the day. And on April 17th , most of us tax professionals woke up and started all over again. Depending on how many clients we put on extensions dsl internet providers the urgency of our day. An Extension, Form 4868 - Application for Automatic Extension of Time to File U.S. streamyx tm net my Income Tax Return, gives a business internet connection an extension to October 15, to file a return. This does not give a taxpayer more time to pay. broadband wireless internet access should be included with the Form 4868.
If a taxpayer cannot pay the full amount due, then they should, according to the IRS, still file the extension. Penalties will apply.
Extensions are a good thing, it allows Tax Professionals to take their time and prepare a true and correct tax return, rather then working fast and perhaps missing the internet millions wireless broadband deals because we were tired and seeing double by April 15th.
The little things might include re-calculating the depreciation for rental property and being sure that the cost of the land was not included in the bases. (The cost of the land can not be depreciated)
The little things could include, putting in the 12 or 13 miles that the taxpayer drove, for the charitable organization last year.
The little things might be, not forgetting to use the table to calculate the sales tax for Line 5b of Schedule A. (Actually this is a big thing, depending on the income of the taxpayer, this deduction easily can be in the high 3 figure or lower 4 figures)
Another little thing that is often forgotten or overlooked is the interest payment on the Timeshare! (Or is that a big thing?)
Its April 17th, and I'm still trying to wake up from the nightmare. Perhaps I will write a better article next week. So for now, I hope tax season was good for you. Hopefully you will prepare to pay less and earn more in the coming tax season.
Remember, if what you owed on April 15th was a surprise, you have missed the boat on tax planning. Filing for an extension to file your tax returns won't make up for poor tax planning.
Cassandra Ingraham, Tax Accountant owns and operates a mobile Tax Service and Shoebox streamyx member Service in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com providing Formal Introductions to Lenders for Accounts Receivable Funding (Factoring) and Purchase Order Funding.