Your Tax Question - 071

In case you were wondering...

It is 4 am Eastern Standard Time on April 1. There are only 17 days left until taxes are due and I still have clients that have not gotten me their paperwork. Yes, we can, in a pinch, file for an extension but I am that irritating guy who in college got term papers written and handed in 2 months early. Now, I have the words of the White Rabbit echoing in my head - "Oh dear, I'm late, I'm late."

Anyway, this is just a friendly reminder to any of you who still need to have your taxes prepared that you have until the 18th of the month to get them filed.

John

Your Tax Question - 067

Dear John, I just found out that my tax accountant will not be doing my corporate taxes for this year. Since they are due on the 15^th of March do you think that there would be enough time for you to prepare my taxes? Thanks, Jo-Jo
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Hi Jo-Jo,

Yes, there will be plenty of time to prepare your taxes. If we find that there is a problem and we need more time then we simply have to file form 1138 or 7004 and remit any payments that we expect to have to pay for an automatic 6 month extension of time. Don’t fret about it, I’ll take care of everything.

Thank you much,
John

Your Tax Question - 012

Dear John, I know that I will owe taxes this year but I really do not have the money, what can I do? Sincerely, Desperate.
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Dear Desperate,

You can do a couple of things. First, you can fill out Form 4868 for an automatic 6-month extension and then simply pay the interest on what you owe in October. Or, if you will have the money soon after April 15th you could file but leave it to the IRS to figure your tax for you - that way the IRS would bill you which would give you an extra 30-45 days to come up with the money.

In the worst case scenario (and I don't endorse this) you could borrow the money from your grandmother and never repay her - she is likely less intimidating than the IRS. ;-)

Best of Luck,
John.

PS. I would be happy to help you with the IRS part (not your grandma). email me

Your Tax Question - 010

Dear John, Our home just recently burned and all of my paperwork for this year’s taxes was destroyed – what am I supposed to do? Frank.
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Hey Frank,

Sorry to hear about the home, I pray everyone was alright. Not to worry with the April 15th deadline. Simply fill out IRS Form 4868 for an automatic 6 months extension on your taxes' due date. You will have to send in the form with a reasonable estimation of your tax due and then pay an interest rate on any unpaid tax actually due from the original due date. It is not the best you could hope for but at least there is a little something for such a catastrophe.

Warmly,
John

PS. If you need help with this please email me.