IRS reminders – Tax deadlines September 17, 2018

The filing deadline for Corporations, Corporations and Partnerships that timely requested an automatic 6-month extension is quickly approaching. September 17, 2018 – is the extended deadline tax return filing for calendar year taxpayers filing Forms 1120, 1120S and 1065 for tax year 2017. The Internal Revenue Service continues to monitor Hurricane Irma, but reminds calendar-year partnerships that the due date for filing a return after receiving an extension remains Sept. 15.

Generally, a penalty is charged if a return is filed after the due date (including extensions) unless you can show reasonable cause for not filing on time. Reasonable cause will only be granted due to extraordinary circumstances, such as being seriously ill or incapacitated due to medical reasons. Other circumstances such as fire, casualty or natural disaster also may be accepted as reasonable cause.

Additionally, the Internal Revenue Service today reminded small businesses, self-employed individuals, retirees, investors and others who need to pay their taxes quarterly that the third estimated tax payment for 2018 is due on Monday, Sept. 17, 2018.

Who needs to pay quarterly estimated taxes?

Most often, self-employed people, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others – a substantial portion of whose income is not subject to withholding – often need to make these payments as well. Investor income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.

Because the U.S. tax system operates on a pay-as-you-go basis, taxpayers are required, by law, to pay most of their tax liability during the year. For 2018, this means that an estimated tax penalty will normally apply to any party that pays too little tax -- generally less than 90 percent of the tax shown on the return for the current tax year or 100 percent of the tax shown on the return for the preceding tax year -- during the year through withholding, estimated tax payments or a combination of the two.

If you are not sure if you need to pay quarterly estimated tax payment, consult with your tax professional.

Helpful Links are listed below

IRS Publication 509 - Tax Calendars https://www.irs.gov/publications/p509

IRS Publication 505 -Tax Withholding and Estimated Tax. https://www.irs.gov/publications/p505

IRS Tax Calendar for Businesses and Self Employed https://www.irs.gov/businesses/small-businesses-self-employed/irs-tax-calendar-for-businesses-and-self-employed

IRS reminders – Tax deadlines September 17, 2018

RCC

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