I missed the deadline to file my tax return. Now what? The deadline for individual taxpayers to file their 2017 Forms 1040, U.S. Individual Income Tax Return, was April 18, 2018. Generally, the filing deadline for Forms 1040 is April 15 of the following tax year. However, as was the case for the 2017 filing [...]
Offshore Voluntary Disclosure Program Ends September 28, 2018 The IRS recently announced that it will end its Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. To participate in the OVDP before it ends on September 28, 2018, a taxpayer must submit a complete offshore voluntary disclosure. The disclosure must (1) conform to the requirements [...]
The U.S. Supreme Court recently refused to hear an appeal from the Ninth Circuit Court of Appeals in Knappe v. United States of America, 713 F.3d 1164 (9th Cir., 2013), cert denied, 134 S. Ct. 422 (2013). The issue was whether an estate could rely on the advice of a CPA as to when a [...]
A common misperception for taxpayers is that by refraining from filing, they will buy themselves time to pay their taxes with the IRS. While this may have some truth to it, taxpayers that fail to file in a timely manner are exposing themselves to significant penalties. That exposure may not be worth the temporary reprieve [...]
I have been watching the tax cases dealing with building facade easements for insight into how the IRS and the courts are reacting to the significant deductions being taken by partners in real estate partnerships. These partnerships generally buy a building, develop it, and contribute a restrictive easement to an historic preservation nonprofit organization. (See [...]
Taxpayers who do not timely file their returns or timely pay their obligations will be subject to penalties not only at the federal level with the IRS, but also at the state level with the Minnesota Department of Revenue (state). The state assesses different penalties for taxpayers who are individuals versus businesses. The penalties vary [...]
Many taxpayers are unable to timely file their returns or timely pay their obligations. When this happens, the IRS will usually assess penalties against the taxpayer. The penalty for filing the return late is 5% per month, up to 25% of the unpaid obligation. The penalty for paying the tax late is .5 % per [...]