It's that time of year again... time to file your income tax return.
What if you can't get it done or don't have all of your material to prepare it?
File for an extension.
There are many reasons taxpayers may want to file an extension. Procrastination is right at the top of that list. For others however it may be that all of their tax documents have not arrived yet. The Form K-1 (From partnerships, subchapter S corporations and estates and trusts) may not be received so as to prepare a return by the due date.
To file an extension, complete Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This must be completed and filed by the due date, normally April 15. For 2010 returns it is April 18, 2011. The extension is granted automatically if it is filed completely and on time. The extension is for six months and allows for the returns to filed up until October 17, 2011.
Taxpayers must also file an extension in the state they are a resident of and any other states they may be required to file in. In Connecticut, taxpayers must file Form CT-1040- Ext, Application for Extension of Time to File Connecticut Income Tax Return for Individuals.
The extension merely extends the time to file the return; it does not extend the time to pay any taxes due. If taxes are due, they should be paid when the extension is filed.
Taxpayers that want to fund a Traditional IRA or a Roth IRA for 2010 need to have this made by April 18, 2011. Taxpayers with enough earned income that meet certain income requirements, can fund up to $5,000 into an IRA, Roth IRA or perhaps some combination of these. Taxpayers age 50 and older can make an additional $1,000 contribution in a so-called "catch up" contribution.
Taxpayers that are self-employed and want to fund a Simplified Employee Pension ("SEP") have until the due date of the returns, including the extension to fund this. In other words, if you want to fund your SEP, you can file the extension and this will allow up October 18, 2011 to fund this account.
As with other tax forms, we recommend the application for extension be mailed by Certified Mail-Return Receipt Requested.
This will provide you with proof of mailing.
ACTION ITEM: If you can't file your income tax return by April 18, 2011, file an extension.
Thomas F. Scanlon, CPA, CFP® is the President of Borgida & Company P.C., CPA's in Manchester, CT and can be reached at http://borgidacpas.com/
0 comments:
Post a Comment