Foreign Bank Account Report (FBAR) extended deadline is on October 15th 2017

If you did not file your FBAR and you have balances in bank accounts outside USA, you still have time to file your FBAR form by October 15th (actually October 16th this year) with an automatic extension.

R & D Tax Credit is a tremendous tax saving for businesses in IT and other industries

If you have are operating a business in IT industry or other technology intensive industry you might qualify for R & D Tax Credit and save large amounts in Income Tax or EVEN Payroll Tax for 2017. We are offering a special session on this for IT industry. Please join us


     

Capital Assets - How much can you expense directly

Capital assets purchased in business have to be capitalized and depreciated over the life of the asset as allowed under IRS rules. However, under new regulations, the IRS has set safe harbor rules under which acquired items do not need to be capitalized. This safe harbor is $5,000 for taxpayers with an audited financial statement or $2,500 for taxpayers without an audited financial statement.

Partnership Return 1065 deadline now same as 1120S

Another deadline change for this year is in Partnership and C Corporation returns.

Partnership returns Form 1065 are now due on March 15th, instead of the usual April 15th deadline. This change goes into effect in 2017 and forward.

So, now S Corporation tax return 1120S and Partnership tax return 1065 are due on the same day - March 15th.

Another change is in C Corporation return 1120 - which is now due on April 15th (this year it is April 18th).

NEW DEADLINE for W2 Filing for 2017

For the first time, businesses this year must file W2 wage reports with IRS by January 31st. This is a major change compared to past when they were not due until end of February and even end of March. This year, and going forward, the deadline is January 31st. This is the same deadline that applies for employees. So, businesses must provide W2s to employees by January 31st and must file with IRS by the same date. Same deadline change applies to 1099s for 2017 and going forward.

Cost Segregation Helps in Saving Taxes - Big League

Change in Partnership Form 1065 Tax Filing Deadline

If you file a Partnership Tax Return Form 1065 then there is a major change in its filing deadline. The Partnership Tax Return is now due on March 15th, 2017. This is the new deadline for Partnership Tax Returns going forward.

Make sure you don't miss this deadline. There are some not-so-pleasant penalties for not filing the partnership returns on time. If you are not able to file it by March 15th, 2017, you can file for an extension until September 15, 2017.

Major Filing Date Change for 2017 - Foreign Bank Account Reporting

There is a major change in filing deadline in 2017. This one is for Foreign Bank Account Reporting also known as FBAR. This report has always been due on June 30th of each year. For the first time, the deadline has now changed to April 15th.

However, The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced that all taxpayers will get an automatic extension for FBAR to October 15th each year. In 2017, the extended deadline is October 16, 2017.

Postpone Income if you can - last chance to do that

With all the big talk about lower taxes in 2017 and beyond with the new US Administration, there are some strategies that are really important.

You should have lower taxable income in 2016 and higher in 2017, so you pay low taxes in 2016 with lower income and pay lower taxes in 2017 because of low tax rates, even if your income is higher.

So, one of the ways you can do that is by postponing income as much as you can. On individual level, we pay taxes on cash basis. A lot of businesses operate under cash basis. If you are a cash basis tax payer then you should try to avoid collecting income for the next 15 days if you don't need to.

This way you will postpone your income into the next year - with hopefully lower tax rates. Of course, it has to be your conviction that the tax rates will go down. If you believe the lower tax rates are not actually coming in 2017, then be careful with postponing your income.

Another idea to consider is to lump your expenses into one year and that is 2016. If you bring in all the expenses, pay them now instead of January or February, and deduct them in 2016.

However, be careful with that strategy. It is not a strategy that works all the time.

We can help you think through this. Please contact us and may be you can save a few thousand bucks in taxes - if you don't mind.

Tax Advice: How long should I keep records?

How long should I keep records?:

The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out.

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax.

The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.

Period of Limitations that apply to income tax returns:

1. Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.
2. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.
3. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
4. Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.
5. Keep records indefinitely if you do not file a return.
6. Keep records indefinitely if you file a fraudulent return.
7. Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

The following questions should be applied to each record as you decide whether to keep a document or throw it away.

Are the records connected to property?

Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.

If you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property.

What should I do with my records for nontax purposes?

When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.



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