• File Your 2014 Tax Return To Receive Your 2016 Subsidy

    28 September 2015
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    Each year, the IRS reports about $1 billion in unclaimed refunds for individuals who did not file a tax return. The plot thickens: If you are one of the over 1 million individuals who received an Obamacare health insurance premium subsidy last year and haven’t yet filed your 2014 tax return, you are risking your opportunity to receive a subsidy in 2016. That’s right: Doing your taxes can mean more money in your pocket!

    The subsidy, which is paid by the government to your insurer to reduce the premiums you owe, is actually an advance payment of the premium tax credit (PTC) based upon your “estimated” income for the year. Your actual PTC is based on your “actual” income as determined on your tax return. If the advance PTC (subsidy) was less than the actual PTC as determined on your tax return, you are entitled to the difference. On the other hand, if your actual PTC is less than the advance amount, you may owe Uncle Sam some or all of the difference.

    Whether you are entitled to additional PTC or owe some back cannot be determined without filing your return. The IRS estimates that 710,000 individuals who received an advance PTC have yet to file a 2014 return or did not file an extension. Add that to the approximately 360,000 taxpayers who received an advance PTC and have filed an extension, and there are over 1 million individuals who need to reconcile their 2014 PTC who have not yet filed.

    Because the Marketplace will determine eligibility for advance PTC for the 2016 coverage year during the fall of 2015, if you haven’t filed your 2014 return yet, you can substantially increase your chances of avoiding a gap in receiving this help if you file your 2014 tax return as soon as possible, even if you have an extension until October 15th.

    Navigating the complicated Obamacare forms developed by the IRS is difficult for many taxpayers, and most seek professional assistance. The IRS is currently sending letters to individuals who received advance PTC subsidies and have yet to file. The letter encourages taxpayers to file within 30 days of the date of the letter in order to avoid a gap in receiving advance payments of the PTC in 2016.

    It is never a good idea not to file, even if you owe and can’t pay. The IRS will get more aggressive as time goes on. So whether you don’t feel you can do your own return, are afraid you may owe some of the PTC back, or think you may be subject to penalties for failing to have health insurance coverage, we encourage you to get in touch with us at Dagley & Co so we can try our best to straighten everything out for you. There are penalty exceptions for being uninsured, or if you owe a PTC repayment there’s a possibility it can be reduced, and it may all work out OK. Procrastinating isn’t going to change the outcome and could put your 2016 advance PTC at risk.

    Who knows; you may even be entitled to more PTC and a refund.

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  • ‘Where’s The Rest Of My Tax Refund?’ Answered

    24 September 2015
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    Sometimes the IRS keeps all or a portion of the federal refund a citizen was expecting. If you’re one of those people and you’re wondering why, it may be because you owe money for certain delinquent debts. If that is true, the IRS or the Department of Treasury’s Bureau of the Fiscal Service (BFS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt.

    Important facts you should know about tax refund offsets:

    1. If you owe federal or state income taxes your refund will be offset to pay those tax liabilities. If you had other debt such as child support or student loan debt that was submitted for offset, BFS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.
    2. The law prohibits the IRS from using liens or levies to collect any Affordable Care Act individual shared responsibility payment (the tax for not having required minimum essential health care coverage). However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund that may be due to you.
    3. You will receive a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency.
    4. You should contact the agency shown on the notice if you believe you do not owe the debt or you are disputing the amount taken from your refund.
    5. If you filed a joint return and you are the spouse who is not responsible for the debt, but are entitled to a portion of the refund, you may request your portion of the refund by filing IRS Form 8379, Injured Spouse Allocation If you know that your spouse has outstanding debts and anticipates an offset, you can attach Form 8379 to your original Form 1040, Form 1040A, or Form 1040EZ. Or it can be filed by itself after you are notified of an offset.
    6. If you file a Form 8379 with your return, write “INJURED SPOUSE” at the top left corner of the Form 1040, 1040A, or 1040EZ. IRS will process your allocation request before an offset occurs.
    7. If you are filing Form 8379 by itself, it must show both spouses’ social security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form. Do not attach the previously filed Form 1040 to the Form 8379. Send Form 8379 to the Service Center where you filed your original return.
    8. If you reside in a community property state, overpayments (refunds) are considered to be joint property and are generally applied (offset) to legally owed past-due obligations of either spouse. There are exceptions, so please call for additional details if this rule affects you.
    9. The IRS will compute the injured spouse’s share of the joint return for you. Contact the IRS only if your original refund amount shown on the BFS offset notice differs from the refund amount shown on your tax return.

    For assistance with IRS withheld refunds or completing Form 8379, please get in touch with us at Dagley & Co.

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  • The Risks Associated With A Sole Proprietorship

    22 September 2015
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    new business

    If you want to start a business, you’re probably about get down and dirty with the registration process. The simplest and least expensive form of business is a sole proprietorship. A sole proprietorship is a one-person business that reports its income directly on the individual’s personal tax return (Form 1040) using a Schedule C. There is no need to file a separate tax return as is required by a partnership or corporation (if the business is set up as an LLC with just one member, filing is still done on Schedule C, although an LLC return may also be required by the state). Generally, there are very few bureaucratic hoops to jump through to get started.

    However, we strongly recommend that you open a checking account that is used solely for depositing business income and paying business expenses. You will also need to check and see if there is a need to register for a local government business license and permit (if required for your business).

    If you are conducting a retail business, you will need to obtain a resale permit and collect and remit local and state sales taxes.

    If you hire employees, you will need to set up payroll withholding and remit payroll taxes to the government. Before you can do that, however, you’ll need to apply to the IRS for an employer identification number (EIN) because you can’t just use your Social Security number for payroll tax purposes. An EIN can be obtained online at the IRS web site or by completing a paper Form SS-4 and submitting it to the IRS.

    As a sole proprietor, you can also very simply set aside tax-deductible contributions for your retirement.

    Example: Paul has been working for a computer firm as an installation specialist but has decided to go out on his own. Unless he sets up a partnership, LLC or corporation, Paul is automatically classified as a sole proprietor. He does not need to file any legal paperwork. His business is automatically classified and treated as a sole proprietorship in the eyes of the IRS and his state government.

    However, there is a big downside to conducting business as a sole proprietor, and that drawback is liability. Sole proprietors are 100% personally liable for all business debts and legal claims. As an example, in the case that a customer or vendor has an accident and is injured on your business property and then sues, you the owner are responsible for paying any resulting court award. Thus, all your assets, both business and personal, can be taken by a court order and sold to repay business debts and judgments.  That would include your car, home, bank accounts and other personal assets.

    Other forms of business, such as LLCs and corporations, can protect your personal assets from business liabilities. If you feel that your business is susceptible to lawsuits and would like to explore alternative forms of business, please give Dagley & Co. a call so we can discuss the tax ramifications of the various business entities with you. If you decide on something other than a sole proprietorship, you’ll need legal assistance to formally set up your new business.

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  • Family Courts Sometimes Contradict Federal Tax Law

    17 September 2015
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    You would think federal taxes and law courts would keep up with each other, but they actually do not. In fact, family law courts make rulings that are contradictory to federal tax law all the time, causing confusion and inequity in divorce actions since family court rulings cannot trump federal tax law.

    A common issue for divorced parents is who gets to claim the children for tax purposes. Federal tax law provides that the parent with physical custody claims the child unless that parent releases the exemption to the other parent. Frequently, family courts award physical custody to one parent and the tax exemption to the other. To make matters worse, the courts assume that the exemption deduction will provide a financial benefit to the non-custodial parent. Then the court adjusts child support accordingly, leaving the non-custodial parent with two unpleasant surprises when filing his or her tax return: the child support is not deductible and the child cannot be claimed as a dependent without a release from the custodial parent.

    Who is to blame? At first glance, one would tend to blame the court. However, it is not the job of the court, but the duty of the attorney to bring the judge’s attention to federal tax law so that he or she is aware of what applies in order to make a correct judgment. Few family law judges know tax law.

    Avoid mistakes – Consult with your tax advisor. Go over the proposed settlement and determine what the tax implications will be before the divorce is finalized. Here are some of the tax issues that need to be considered as part of a divorce:

    Property settlements – When property is divided in a divorce, the spouse who keeps the property assumes the community basis. This, in effect, means that spouse assumes any tax liability when the property is sold.

    Example: A couple has a home worth $450,000 and a mortgage of $50,000, which provides a net equity of $400,000. They also have a bank savings account worth $400,000. They divorce, and agree that the wife will keep the home and the husband will keep the bank account. On the surface, this sounds equitable, but, after taxes are considered, it may not be. Let’s assume the couple purchased the home for $100,000 several years ago. The wife assumes the community basis of $100,000. If the wife sells it for $450,000, she will net only $373,000 from the sale after paying the selling costs of approximately $27,000 and paying off the $50,000 loan. In addition, she has a taxable profit from the sale that is computed as follows:

    Sales Price:                $450,000

    Community Basis:        <100,000>

    Sales Costs:               < 27,000>

    Home Sale Exclusion     <250,000>

    Taxable Gain                 $ 73,000

    Federal Tax @ 15%          10,950 (there may also be a state tax, and Federal tax could be as high as 20%)

    So, in our example, the wife nets $362,050 ($373,000 less taxes of $10,950), while her spouse nets a full $400,000 from the savings account. Not exactly even after taking into account the tax liability.

    Issues involving Children – There are substantial tax issues related to the children. Here are some of them:

    • Dependency – Federal tax law gives the dependency to the custodial parent unless the custodial parent releases, in writing, the dependency to the non-custodial parent. There is a tax deduction of $4,000 (2015) for each dependency exemption.
    • Child Credit – The 2015 child tax credit, $1,000 for each child under age 17, goes to the parent who claims the child as a dependent.
    • Joint Custody – Some courts award joint custody to the parents. In this situation, the IRS does not split the benefits of claiming the child as a dependent. Instead, the parent with physical custody the greater part of the year receives all of the benefits.
    • Education Credits – The education tax credits for college tuition expenses go to the one who claims the exemption for the child, regardless of who paid the tuition.
    • Child Care Credit – The parent who claims the child’s exemption is the only one who can claim a tax credit for child care expenses This can cause issues where both parents work and share custody.
    • Child Support– is not deductible by the parent who pays the support and is not taxable to the one who receives it.

    Alimony – is deductible by the spouse who pays it and includable in income by the spouse who receives it. To be treated as alimony, payments must be in cash, required by the divorce instrument, and end upon the death of the payee. In addition, alimony payments cannot be contingent on the status of a child and are valid only while the taxpayers live apart.

    Conflict of Interest – Rules of Practice do not allow a tax practitioner to represent clients where there is a conflict of interest. This is an issue for divorcing couples since the divorce creates a conflict of interest and a practitioner may not be able to provide services to both clients and, in some cases, may not be allowed to provide services to either.

    As you can see, there are a number of complications related to divorce and the status of the children of divorced parents. If you have questions, please get in touch with us at Dagley & Co.

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  • Tax Consequences After Gifting Money or Property

    14 September 2015
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    Have you ever thought about gifting money or property to someone – perhaps to one of your children or other family members – and wondered what the tax consequences could be? Gift and inheritance taxes were created long ago to make sure an individual’s assets are taxed as they pass on to future generations. Congress has frequently tinkered with these taxes, and currently the gift and inheritance taxes are unified with a top tax rate of 40%. However, the law does provide the following two exclusions from the tax:

    Lifetime exclusion – For 2015, $5.43 million per person is excluded from gift and inheritance tax. This amount is annually adjusted for inflation and applies separately to each spouse of a married couple. Where one of the couple dies and does not use the entire exclusion amount, the unused portion of the exclusion can be passed on to the surviving spouse by filing an estate tax return for the decedent, even if one is otherwise not required.

    Annual exclusion – The exclusion amount is periodically adjusted for inflation. For 2015 the annual gift exclusion is $14,000 per recipient. Thus, an individual can give up to $14,000 to as many recipients as he or she would like without creating a requirement to file a gift tax return. The $14,000 applies to each individual giver, so each spouse of a married couple can give $14,000, for a total per couple of $28,000 to any one person.

    If a person gives more than $14,000 for the year to any single individual, then a gift tax return is required, and the excess of the gifts over $14,000 reduces the lifetime exclusion. Once the annual limit and the lifetime limit have been exceeded, the excess becomes taxable.

    Gifts can take the form of cash or property. When property is given, the dollar value placed on the gift for gift tax purposes is the property’s fair market value (FMV) at the time of the gift. However, the gift recipient assumes the giver’s tax basis in the property, which means that if the giver’s property had built-in gains, the recipient becomes responsible for those gains when the recipient subsequently disposes of the property in a taxable event.

    Example: Earl gives his son, Jack, stock worth $14,000 that originally cost Earl $5,000. Later, Jack sells the stock for $16,000. Jack’s taxable gain from selling the stock will be $11,000 ($16,000 – $5,000).

    However, if Jack had inherited the stock from his father, Jack’s basis would have been the FMV of the stock at the date of his father’s death instead of what Earl had paid for the stock. Assuming the FMV was $14,000 at the time of Earl’s death and Jack subsequently sold the stock for $16,000, he would only have a taxable gain of $2,000 ($16,000 – $14,000).

    This example points to a mistake often made by elderly taxpayers. They will frequently sign over their assets, most commonly their home, to their heirs while they are still alive rather than waiting and allowing the heirs to inherit the property. By doing this, they create a large tax liability for the heirs since the basis of the gift is the giver’s basis, thus the heirs become responsible for the giver’s built-in gain rather than inheriting the property with the basis equal to the FMV at the time of the decedent’s death.

    Example: Mary signs over her home worth $500,000 to her son, John. Mary originally paid $100,000 for the home. If John immediately sells the home for $500,000 after Mary’s passing, he will have a taxable gain of $400,000. However, if John had inherited the property after Mary’s passing, his basis would be the FMV at date of death, or $500,000, and if he sold it for $500,000, he would have no taxable gain at all.

    Additional Exclusions For Gift Tax – In addition, certain medical and education expenses are also excludable over and above the $14,000 annual exclusion cap.

    Tuition Expenses – Tuition expenses paid directly to the qualifying educational institution are permitted without gift tax consequences. For example, a grandparent who wants to help out a college-bound grandchild can pay the student’s tuition directly to the college. Even if the amount is over $14,000, no gift tax reporting is required, and the grandparent’s annual gift exclusion with respect to the child and his or her lifetime exclusion are not affected.

    Medical Expenses – Medical expenses paid directly to the qualifying medical institution or individual providing the care or to the insurance company providing the medical coverage are also exempt from the gift tax and don’t affect the gift tax exclusions. The payments cannot go through the hands of the individual who incurred the medical expenses, but must go directly to the medical provider or insurance company.

    As you can see, gifting can be complicated and requires advance planning to fully take advantage of tax benefits. Please get in touch with us at Dagley & Co. if you need assistance planning your gifts or your estate.

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  • Are Your Charity Auction Purchases Tax Deductible?

    12 September 2015
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    Have you ever won an item at a charity auction? You may be wondering whether the money you spent on the items purchased constitutes a charitable donation, and we’re happy to answer this tricky charity tax question for you.

    The answer to that question is some, but not all, of what’s paid for the item may be deductible. So if you purchase items at a charity auction, you may claim a charitable contribution deduction for the excess of the purchase price paid for the item over its fair market value you must be able to show, however, that you knew that the value of the item was less than the amount you paid for it.  For example, a charity may publish a catalog, given to each person who attends an auction, providing a good faith estimate of items that will be available for bidding.  Assuming you have no reason to doubt the accuracy of the published estimate, if you pay more than the published value, the difference between the amount you paid and the published value may constitute a charitable contribution deduction.

    In addition, if you provide goods for charities to sell at an auction/fundraiser, you may wonder if you are entitled to claim a fair market value charitable deduction for your contribution of appreciated property to the charity that will later be sold.  Under these circumstances, the law limits your charitable deduction to your tax basis in the contributed property and does not permit you to claim a fair market value charitable deduction for the contribution.  Specifically, the Treasury Regulations (Sec 170) provide that if a donor contributes tangible personal property to a charity that is put to an unrelated use, the donor’s contribution is limited to the donor’s tax basis in the contributed property.  The term unrelated use means a use that is unrelated to the charity’s exempt purposes or function. The sale of an item is considered unrelated, even if the sale raises money for the charity to use in its programs.

    Please contact us at Dagley & Co. for additional information on charitable tax deductions.

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  • Generating Your Own Home Power: There Are Tax Credits For That!

    8 September 2015
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    solar energy DIY

    Are you a renewable energy junkie? You probably already know that generating your own power has some financial upsides, and we’re excited to share some of the current credits and benefits you may qualify for.

    Through 2016, taxpayers can get a tax credit on their federal tax return equal to 30 percent of the costs for installing certain power-generating systems on their homes. The credit is non-refundable – which means it can only be used to offset a taxpayer’s current tax liability – but any excess can be carried forward to offset tax through 2016.

    Systems that qualify for the credit include the following:

    • Solar water heating system – Qualifies if used in a dwelling unit used by the taxpayer as a main or second residence where at least half of the energy used by the property for such purposes is derived from the sun. Heating water for swimming pools or hot tubs does not qualify for the credit. The property must be certified for performance by the Solar Rating Certification Corporation or a comparable entity endorsed by the state government where the property is installed.
    • Solar electric system – This is a qualified system that uses solar energy to generate electricity for use in a dwelling unit located in the U.S. and used as a main or second residence by the taxpayer.
      • Fuel cell plant –A fuel cell power plant is a system installed in the taxpayer’s principal residence that converts a fuel into electricity using electrochemical means. It must have an electricity-only generation efficiency of greater than 30% and generate at least 0.5 kilowatt of electricity. The credit is 30% of qualified fuel cell expenditures but is limited to $500 for each 0.5 kilowatt of the fuel cell property’s capacity to produce electricity.
      • Qualified small wind energy – A wind turbine used to generate electricity for use in connection with a dwelling unit used as a main or second residence by the taxpayer is eligible for the credit.
    • Qualified geothermal heat pump –This is a system in which a pump uses the ground or ground water as a thermal energy source to heat the dwelling unit used as a main or second residence by the taxpayer or as a thermal energy sink to cool the dwelling unit. The system must meet the Energy Star program requirements in effect when the expenditure is made.

    Other aspects of the credit include the following:

    • Limited carryover The credit is a non-refundable personal credit that limits the credit to the taxpayer’s tax liability for the year. However, the portion of the credit that is not allowed because of this limitation may be carried to the next tax year and added to the credit allowable for that year.
    • Installation costs Expenditures for labor costs allocable to onsite preparation, assembly, or original installation of property eligible for the credit, and for piping or wiring connecting the property to the residence, are expenditures that qualify for the credit.
    • Swimming pool Expenditures that are for heating a swimming pool or hot tub are not taken into account for purposes of the credit.
    • Newly constructed homes – The credit can be taken for newly constructed homes if the costs of the residential energy efficient property can be separated from the other home construction expenses and the required certification documents are available.
    • Installation costs – Costs for labor allocable to onsite preparation, assembly, or original installation of the qualified residential energy property may be included.
    • Certification – A taxpayer may rely on a manufacturer’s certification that a product is Qualified Energy Property. A taxpayer is not required to attach the certification statement to the return on which the credit is claimed. However, taxpayers are required to retain the certification statement as part of their records. The certification statement provided by the manufacturer may be a written copy of the statement with the packaging of the product, in printable form on the manufacturer’s website, or in any other manner that will permit the taxpayer to retain the certification statement for tax recordkeeping purposes.

    If you have questions about how you can benefit from these credits, please get in touch with us at Dagley & Co.

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  • Back-to-School Tax Tips for Parents and Students

    4 September 2015
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    If you’re smart enough to seek an advanced education (and/or help your children seek it for themselves), be smart enough to take advantage of its tax breaks! Going to college – and figuring out how to pay for it – can be stressful for students and their families. Congress has provided a variety of new tax incentives to help defray the cost of education. Some of these require long-term planning to become beneficial, while others provide almost immediate tax deductions or credits. The benefits may even cover vocational schools.

    If your child is below college age, there are tax-advantaged plans that allow you to save for the cost of college. Although providing no tax benefit for contributions to the plans, they do provide tax-free accumulation; so the earlier they are established, the more you benefit from them.

    • Section 529 Plans—Section 529 Plans (named after the section of the IRS Code that created them) are plans established to help families save and pay for college in a tax-advantaged way and are available to everyone, regardless of income. These state-sponsored plans allow you to gift large sums of money for a family member’s college education while maintaining control of the funds. The earnings from these accounts grow tax-deferred and are tax-free, if used to pay for qualified higher education expenses. They can be used as an estate-planning tool as well, providing a means to transfer large amounts of money without gift tax. With all these tax benefits, 529 Plans are an excellent vehicle for college funding. Section 529 Plans come in two types, allowing you to either save funds in a tax-free account to be used later for higher education costs, or to prepay tuition for qualified universities. For 2015, you can contribute $14,000 without gift tax implications (or $28,000 for married couples who agree to split their gift). The annual amount is subject to inflation-adjustment. There is also a special gift provision allowing the donor to prepay five years of Sec 529 gifts up front without gift tax.
    • Coverdell Education Savings Account—These accounts are actually education trusts that allow nondeductible contributions to be invested for a child’s education. Tax on earnings from these accounts is deferred until the funds are withdrawn, and if used for qualified education purposes, the entire withdrawal can be tax-free. Qualified use of these funds includes elementary and secondary education expenses in addition to post-secondary schools (colleges). This is the only one of the educational tax benefits that allows tax-free use of the funds for below college-level expenses. A total of $2,000 per year can be contributed for each beneficiary under the age of 18. The ability to contribute to these plans phases out when the modified adjusted gross income is between $190,000 and $220,000 for married taxpayers filing jointly, and between $95,000 and $110,000 for all others.
    • Education Tax Credits—Two tax credits, the American Opportunity Credit (partially refundable) and the Lifetime Learning Credit (nonrefundable), are available for qualified post-secondary education expenses for a taxpayer, spouse, and eligible dependents. Both credits will reduce one’s tax liability dollar for dollar until the tax reaches zero. The credit is not allowed for taxpayers who file Married Separate returns.
      • The American Opportunity Credit—is a credit of up to $2,500 per student per year, covering the first four years of qualified post-secondary education. The credit is 100% of the first $2,000 of qualifying expenses plus 25% of the next $2,000 for a student attending college on at least a half-time basis. Forty percent of the American Opportunity credit is refundable (if the tax liability is reduced to zero). This credit phases out for joint filing taxpayers with modified adjusted gross income between $160,000 and $180,000, and between $80,000 and $90,000 for others.
      • The Lifetime Learning Credit—is a credit of up to 20% of the first $10,000 of qualifying higher education expenses. Unlike the American Opportunity Credit, which is on a per-student basis, this credit is per taxpayer. In addition to post-secondary education, the Lifetime Credit applies to any course of instruction at an eligible institution taken to acquire or improve job skills. For 2015 this credit phases out for joint filing taxpayers with modified adjusted gross income between $110,000 and $130,000, and between $55,000 and $65,000 for others. The credit is not allowed for taxpayers who file Married Separate returns.

    Qualifying expenses for these credits are generally limited to tuition. However, student activity fees and fees for course-related books, supplies, and equipment qualify if they must be paid directly to the educational institution for the enrollment or attendance of the student.

    You may qualify for this credit even if you did not pay the tuition. If a third party (someone other than the taxpayer or a claimed dependent) makes a payment directly to an eligible educational institution for a student’s qualified tuition and related expenses, the student would be treated as having received the payment from the third party, and, in turn, pay the qualified tuition and related expenses. Furthermore, qualified tuition and related expenses paid by a student would be treated as paid by the taxpayer if the student is a claimed dependent of the taxpayer.

    • Education Loan Interest—You can deduct qualified interest of $2,500 per year in computing AGI. This is not limited to government student loans and this could include home equity loans, credit card debt, etc., if the debt was incurred solely to pay for qualified higher education expenses. For 2015, this deduction phases out for married taxpayers with an AGI between $130,000 and $160,000 and for unmarried taxpayers between $65,000 and $80,000. This deduction is not allowed for taxpayers who file married separate returns.

    We all know that a child’s success in life has a great deal to do with the education they receive. You cannot start the planning process too early. Please call Dagley & Co. if you would like assistance in planning for your children’s future education.

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  • September 2015 Tax Due Dates For Business Owners

    2 September 2015
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    A few days ago, you probably read our post about September tax due dates for individuals. As promised, here are the tax due dates coming up this month for business owners. Please contact us at Dagley & Co. if you need a CPA to walk you through these steps and smooth out the process. You’ll find our information at the bottom of this webpage.

    September 15 – Corporations

    File a 2014 calendar year income tax return (Form 1120 or 1120-A) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension.

    September 15 – S Corporations

    File a 2014 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you requested an automatic 6-month extension.

    September 15 – Corporations

    Deposit the third installment of estimated income tax for 2015 for calendar year corporations.

    September 15 – Social Security, Medicare and withheld income tax

    If the monthly deposit rule applies, deposit the tax for payments in August.

    September 15 – Nonpayroll Withholding

    If the monthly deposit rule applies, deposit the tax for payments in August.

    September 15 – Partnerships 

    File a 2014 calendar year return (Form 1065). This due date applies only if you were given an additional 5-month extension. Provide each partner with a copy of K-1 (Form 1065) or a substitute Schedule K-1.

    September 15 – Fiduciaries of Estates and Trusts

    File a 2014 calendar year return (Form 1041). This due date applies only if you were given an additional 5-month extension. If applicable, provide each beneficiary with a copy of K-1 (Form 1041) or a substitute Schedule K-1.

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