It's that time again. These tips can help you prepare for the all-important (and often-dreaded) deadline.
- When organizing your tax information, remember that you should have a written acknowledgement from the recipient for any charitable contribution of $250 or more. Also, if you contributed goods valued at more than $5,000, you’ll need to have a valid appraisal on file to support the valuation if the IRS asks.
- Watch for 1099s and K-1s that report taxable income. If you own an interest in a partnership that you know won’t provide a K-1 until after your filing deadline, go ahead and file your extension early. If you don’t receive an information report that you’re expecting, contact the payor to find out why.
- Check your 1099s. Did they get your identifying information correct, including your social security or employer I.D. number? Does the income reported match the income you show from the payor in your books? If something is not right, contact the payor to request a corrected 1099 as soon as possible.
- Watch for corrected 1099 forms, especially ones received after you file your return.
- Be sure to fully fund your IRA or other tax-deferred accounts. In many instances, you can make contributions for 2015 any time up until the due date of the return.
- While the regular tax return filing deadline is April 15, the Washington D.C. Emancipation Day holiday will be observed on Friday, April 15, instead of April 16, 2016. This means that the filing deadline for 2015 individual federal income tax returns without extension is April 18, 2016. Even though you’ve got a few extra days, don’t put off organizing your tax information.
- Remember that an extension of time to file your return is not an extension of time to pay the taxes you owe. Use the information you have available to make an accurate projection of your tax due, and pay that with the extension. If you have any questions or concerns about filing your 2016 income tax return, please contact any member of your Plante Moran engagement team.