Tag Archive for e-file

Rushing To File Taxes Can Result In Errors; E-File Decreases Errors, Extensions Available

WASHINGTON — As the April 17 tax-filing deadline nears, many taxpayers may rush to finish their tax returns or find that extra time is needed to get them done. The IRS recommends that taxpayers request a filing extension if they need one.

Mistakes can happen when hurrying to file a tax return by the due date. This can mean longer processing times and possible tax refund delays. Electronic filing is the best way to avoid common mistakes; it is also the most accurate way to file a tax return. The IRS estimates that about 70 percent of taxpayers can file their tax return at no charge by using IRS Free File software. Read More

Written by | Posted in IRS • Tax Extension • Tax Filing • TaxConnections

Time Is Ticking: Taxpayers Pay Attention

Every year, millions of taxpayers ask for an extra six months to file their taxes. These taxpayers should have paid the tax they owed by the April deadline, but those who requested an extension should mark Monday, Oct. 16 as the extension deadline for 2017.

Every year, millions of taxpayers ask for an extra six months to file their taxes. These taxpayers should have paid the tax they owed by the April deadline, but those who requested an extension should mark Monday, Oct. 16 as the extension deadline for 2017.

While the deadline normally falls on Oct. 15, that date falls on a Sunday this year so the due date is moved to the next business day. Every year, millions of taxpayers ask for an extra six months to file their taxes. These taxpayers should have paid the tax they owed by the April deadline, but those who requested an extension should mark Monday, Oct. 16 as the extension deadline for 2017. While the deadline normally falls on Oct. 15, that date falls on a Sunday this year so the due date is moved to the next business day. Read More

Written by | Posted in Tax Payments • TaxConnections

Mandatory e-filing – Learn How To Prevent Possible Computer-Generated Penalty For Late FBAR

iStock_e-filing irsXSmallThe new mandatory e-filing for all FBARs, including late FBARs, just came into effect yesterday, July 1.  One question that arises is whether penalties may be automatically generated by the computer?

The BSA E-Filing agency has stated it cannot discuss policies about penalties.  As my blog followers are well aware, penalties can be charged whenever an FBAR is filed late (negligent failures can attract a penalty of $10,000 per account that should have been listed on the FBAR, per year). However if there is “reasonable cause” for late filing, such penalties may be waived.  It would follow that if penalties were automatically assessed by the computer, then common sense indicates they should be cancelled upon a proper showing of “reasonable cause”. The electronic filing system does not ask why an FBAR is being filed late.  It seems that now practitioners are concerned there may be a considerable risk that “the computer” might generate penalties automatically even when there is “reasonable cause” for the late filing. No one knows what will happen. We have to let time go by and wait to see the policy the BSA will ultimately adopt.

Currently the e-filing system does not support the capacity to attach a letter or statement explaining why the FBAR is being filed late. This capacity may become active later on. The BSA agent I spoke to said they are advising taxpayers to keep all supporting documentation on file because normally the IRS will come back to the taxpayer and ask for it.  Read More

Written by | Posted in FBAR • IRS