Hi All,
Well its that time of year, for all of you procrastinators who deceided to put off the inevitable of having your 2009 tax returns to be filed either this or next week.
The final electronical e-filing of your return is next friday October 15, 2010 which must be postmarked by Midnight.
What most of you do not understand asking for an extension has it good and bad points.
1. The Good:
A. If you have all of your income and deductions in order, and after it is all figured out you owe no Tax, your in the clear.
B. If your getting a refund there is no late filing fee, no penalties, no interest at all.
2. The Bad.
A. If you have asked for an extension and it has been granted Fine! Here is the drawback.
1. the only item that you save with the extension is the late filing fee, and it could run as high as 25% of the tax owed if the extension was not granted.
2. IF you have not filed for an extension you will be charged that fee.
3. Interest and penalties will continue to accrue from April 15th through the filing date at the rate,
a. 4% interest Compounded daily from April 15th to June 30 2010
b. 4% Interest Compounded Daily form July 1st ot Sept 30, 2010
C. 4% interest Compounded Daily from Sept 30 to December 31, 2010
Until your tax is paid.
4. Then you have Interest on top of Interest and on top of penalties at 4% per quarter, Until your tax is paid
5. I cannot compute the penalties that you will be charged due to the IRS has there own rules pertaining to that until your tax is paid.
So if you have any questions please do not hesitate to ask.
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
Well its that time of year, for all of you procrastinators who deceided to put off the inevitable of having your 2009 tax returns to be filed either this or next week.
The final electronical e-filing of your return is next friday October 15, 2010 which must be postmarked by Midnight.
What most of you do not understand asking for an extension has it good and bad points.
1. The Good:
A. If you have all of your income and deductions in order, and after it is all figured out you owe no Tax, your in the clear.
B. If your getting a refund there is no late filing fee, no penalties, no interest at all.
2. The Bad.
A. If you have asked for an extension and it has been granted Fine! Here is the drawback.
1. the only item that you save with the extension is the late filing fee, and it could run as high as 25% of the tax owed if the extension was not granted.
2. IF you have not filed for an extension you will be charged that fee.
3. Interest and penalties will continue to accrue from April 15th through the filing date at the rate,
a. 4% interest Compounded daily from April 15th to June 30 2010
b. 4% Interest Compounded Daily form July 1st ot Sept 30, 2010
C. 4% interest Compounded Daily from Sept 30 to December 31, 2010
Until your tax is paid.
4. Then you have Interest on top of Interest and on top of penalties at 4% per quarter, Until your tax is paid
5. I cannot compute the penalties that you will be charged due to the IRS has there own rules pertaining to that until your tax is paid.
So if you have any questions please do not hesitate to ask.
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.