The IRS has announced on its website that certain affected taxpayers have until November 2, 2015 to file most tax returns (including individual, estate, trust, partnership, C corporation, and S corporation income tax returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date falling on or after May 4, 2015, and on or before November 2, 2015. We strongly urge our clients that are able, to adhere to original IRS due dates.
This announcement applies to the following:
• Any individual whose principal residence, and any business entity whose principal place of business, is located in Harris, Hayes, and Van Zandt counties;
• Any individual who is a relief worker assisting in a covered disaster area, regardless of whether he is affiliated with recognized government or philanthropic organizations;
• Any individual whose principal residence, and any business entity whose principal place of business, is not located in a covered disaster area, but whose records necessary to meet a filing or payment deadline are maintained in a covered disaster area;
• Any estate or trust that has tax records necessary to meet a filing or payment deadline in a covered disaster area; and
• Any spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife.
This relief also includes the filing of Form 5500 series returns, in the way described in Rev Proc 2007-56, Sec. 8. Additionally, the relief described in Rev Proc 2007-56, Sec. 17, relating to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 or 5498 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or after May 4, 2015, and on or before May 19, 2015, provided the taxpayer made these deposits by May 19, 2015.
Again, we at Maddox, Thomson & Associates encourage our clients, that are able, to please adhere to original IRS due dates. We wanted to inform you of this extension; however we will be contacting you at regularly scheduled dates for all needed tax information. By delaying the filing and distribution of certain tax returns and estimated payments, potential complications could arise. With this grant of additional filing time some S corporations, partnership and trusts may be delayed in receiving all of the information necessary to meet the filing deadline. This delay could result in individuals receiving various K-1 income information at a time insufficient to include it on individual returns by the extended November 2nd deadline. Such a logjam of information all at November 2nd could lead to the need for amended returns after the filing date. In addition, there is the risk of the IRS misapplying your estimated tax payments, and/or any prior year overpayments increases, as well as significantly longer wait times for possible refunds.