enactment

Tax

Late-Penalty Relief for Extended Filers

Due to delays at the start of the tax season, the IRS is providing late-payment penalty relief to individuals and businesses requesting a tax-filing extension because they are attaching forms to their returns that couldn’t be filed until after January.

The relief applies to the late-payment penalty, normally 0.5 percent per month, charged on tax payments made after the regular filing deadline. This relief applies to any of the forms delayed until February or March, primarily due to the January enactment of the American Taxpayer Relief Act.

Taxpayers using forms claiming such tax benefits as depreciation deductions and a variety of business credits, including the Work Opportunity Credit qualify for this relief, as well as the following:

  • Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)
  • Form 8908, Energy Efficient Home Credit
  • Form 8839, Qualified Adoption Expenses
  • Form 5695, Residential Energy Credits

Please call us for a complete list of delayed forms.

Individuals and businesses qualify for this relief if they properly request an extension to file their 2012 returns. Eligible taxpayers need not make any special notation on their extension request, but as usual, they must properly estimate their expected tax liability and pay the estimated amount by the original due date of the return.

The return must be filed and payment for any additional amount due must be made by the extended due date. Interest still applies to any tax payment made after the original deadline.

Give us a call if you’re planning on filing a tax extension this year. We’ll make sure you get the late-penalty relief you are entitled to.

Asset Protection Estate Financial Planning

Ensure Your Family’s Security with an Estate Plan

No matter what your net worth, you should have an estate plan in place. Such a plan ensures that your family is cared for and your assets maximized upon your death. An estate plan consists of your will, health care documents, powers of attorney, life insurance coverage, and post-mortem letters.

For those of you with an estate plan already, good for you! But we have a piece of additional advice: make it a priority to review the plan every two years to see whether it needs updating.

Here are the life events that necessitate an update to your plan:

  • Divorce
  • Marriage or remarriage
  • Birth/adoption of child
  • Death of spouse or child
  • Sale of a residence or purchase of new residence
  • Retirement
  • Enactment of new tax laws

When updating your estate plan you may need to do the following:

  1. Name a different executor
  2. Revise your will, especially if your assets have increased significantly
  3. Reassess your life insurance needs
  4. Add or change a power of attorney
  5. Change legal documents to comport with state laws if you move to a different state
  6. Change wills or trust instruments to account for changes in beneficiaries
  7. Change your post-mortem letter to reflect new assets, changes in executors, or other changes

Due to recent changes in estate tax laws, many estate plans may need to be revised. Give us a call to review your current situation.

Scroll to top