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This year’s tax season is going to be different. The new tax laws that took effect for 2018 represent the biggest changes to the tax code in over 30 years. So if you haven’t thought about preparing your taxes for 2018, you’ll want to get a jump on it.

On December 18, 2015, President Obama signed legislation called “Protecting Americans from Tax Hikes” Act of 2015, or the PATH Act for short. 

The PATH Act contained many extensions and changes to existing tax laws.  The Act also included a provision which will delay refunds for certain taxpayers.  The IRS is now required to not issue a refund to anyone claiming the Earned Income Tax Credit or the Additional Child Tax Credit until February 15.  Both of these refunds are considered “refundable credits,” which are essentially treated as additional tax payments, and can reduce one’s tax liability below zero.  More, the PATH Act was enacted to give the IRS more time to review refund claims, in an effort to reduce fraud and catch refunds that may be improperly issued.

Do you have questions about the PATH Act, your refund, or income tax preparation? Let's talk! Contact me at btheofilos@zinnerco.com or any of the professionals here at 216.831.0733. We're ready to start the conversation and end the confusion. 

The Internal Revenue Service has issued the 2017 optional standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. 

The November 15th deadline for non-profit organizations is quickly approaching. This is the final due date for calendar year non-profit organizations that have taken advantage of the two extensions already available to them. This includes organizations that are required to file Form 990, Form 990EZ and the online filing of Form 990N. (Keep in mind that the 990N is only required to be filed electronically once every three years to maintain tax-exempt status).

The Highway Act changed the filing due dates of business income tax returns beginning for tax years after 12/31/15. Along with these changes the extension periods for other types of returns have also been updated. The following chart highlights these important revisions.

The Highway Act is making changes to our familiar due dates for business income tax returns. To recap current due dates, form 1120 (U.S. Corporation Income Tax Return) is initially due two and a half months after the close of the corporation’s tax year and can be extended for a six month period. 

Calendar year corporations are, therefore, initially due on March 15^th following the end of the calendar year and can be extended through September 15^th. Form 1065 (U.S. Return of Partnership Income) is initially due three and a half months after the close of the calendar year with an option for a five month extension. Calendar year partnerships are initially due April 15^th with an extension making the due date October 15^th.

Read more by Barb Theofilos: When Are Severance Payments Made to FICA?