TAX DUE DATES, EXTENSIONS, & AMENDING RETURNS

Most of you know your federal and California income tax returns are due to be filed, and if any balances owed, are to be paid by April 18^th.  This year the government is giving most filers an extra three (3) days because the normal April 15^th   due date, is a Friday and also a holiday in certain regions of the Country.  So if Friday, April 15^th, is a holiday the next business day is Monday, April 18^th.  Along with any income tax returns to be filed, gift taxes should be paid, if owed, and filed with Form 709.  The 2010 Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, was finally released on Friday(March 18) reflecting the changes made by Congress under their Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (PL 111-312) which was just enacted on December 17, 2010.  We should always remember that it's the IRS that has to update or develop a form (with instructions) to turn complicated laws Congress passes into reality.

If it's not possible to gather the necessary information together to prepare your return, an extension requesting additional time to file will need to be filed.    However, any additional tax beyond what has already been withheld or paid as "estimates" still needs to be paid by April 18^th in order to avoid any late payment penalties plus interest.  The extension, if granted, will allow up to 6 additional months (usually an October 15^th due date) to file your return. 

Finally, if you discovered that you forgot to:  take another deduction, report a Form 1099 that you received late, or make other changes to your 2007 income tax return, you can still amend your 2007 return.  The amended 2007 return needs to be filed by no later than 3 years after you filed your original return.  Therefore, if you filed your original 2007 return before or on April 15, 2008, the amended return is due on April 18, 2011.   If you filed your original 2007 return under extension on, say July 23, 2008, your amended 2007 return would be due by July 25, 2011.  You get the extra days because July 23 is a Saturday and July 25 is the next business day.

As you can tell from the above, due dates are important and should be watched.  I therefore always recommend that when you file a tax return with the IRS and/or your State's taxing authority, you should obtain proof for the date of filing.   When filing by mail get from the Post Office a certified mail receipt with return receipt requested, and when e-filing get an e-mail  advising that your return was received by the IRS or State's e-file center for e-filing.

Bonus Depreciation extended thru 2010

The Small Business Jobs Act of 2010 extended 50 percent bonus depreciation through the end of 2010. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended bonus depreciation for two years (through the end of 2012) and increased the bonus depreciation allowance rate from 50 percent to 100 percent for qualified property acquired after September 8, 2010 and before January 1, 2012, and placed in service before January 1, 2012.

Nevertheless, the additional first-year bonus depreciation amount applicable to vehicles is limited to $8,000, whether other assets in the same depreciation class are entitled to 50 percent or 100 percent bonus depreciation. Sport Utility Vehicles (SUVs) and pickup trucks with a gross vehicle weight rating (GVWR) in excess of 6,000 pounds continue to be exempt from the luxury vehicle depreciation caps (under Code Sec. 280F).
Steve Mueller CPA  Auburn, CA   www.SteveMuellertax.com