April 2017                   PADGETT BUSINESS SERVICES®    
    Vol. 15 No. 4

Padgett Business Services

1625 Esplanade
Chico, CA 95926
530.899.3988

 

  QuickLinks:

IRS
  
THIS MONTH:
* 2nd Quarter 2017 Due Dates
* Need More Time to File Your Personal Return?
* What If I Can't Pay My Taxes?
* Common Business Management Mistakes
2nd Quarter 2017 Due Dates
April 18:
  • Individuals:
    • 2016 Form 1040 due, or file Form 4868 for a 6-month automatic extension.
    • 2016 FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), due. Automatic 6-month extension will be granted for filers who fail to meet the due date.
    • Last day to contribute to an IRA and ESA for 2016.
    • First installment of 2017 estimated tax due.
    • 2016 Form 709, US Gift Tax Return, due if more than $14,000 was gifted to any individual besides a spouse or charity in 2016, or file Form 4868 or 8892 for a 6-month automatic extension. 
  • Calendar-Year End C Corporations:
    • First installment of 2017 estimated tax due.
    • 2016 Form 1120 due, or file Form 7004 for automatic 6-month extension.
May 1:
  • Employers: File Form 941 for 1st quarter 2017.
May 15:
  • Partnerships & S Corporations: File Form 8752 if on fiscal year under Section 444 election.
June 15:
  • Individuals:
    • 2nd installment of 2017 estimated tax due.
    • 2016 Form 1040 due for U.S. citizens or resident aliens living/working (or active duty military) outside the U.S. or Puerto Rico or file Form 4868 for 6-month automatic extension.
  • Calendar-Year End C Corporations: Second installment of 2017 estimated tax due.
Need More Time to File Your Personal Return?
April 18th, 2017 is the official filing deadline for Form 1040, U.S. Individual Income Tax Return. However, many taxpayers require additional time to gather their data to file a complete and accurate return. The IRS allows for an extension of time to file, NOT to pay. You can submit Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to receive a six-month extension until October 16th, 2017. By filing this form, you won't be subject to the late filing penalty. But remember, you must pay in at least 90% of the current tax (100% of the prior year or 110% if AGI is greater than $150,000 in 2015) to avoid late payment penalties during the extension period with the remaining balance paid with the filing of the return. This may require you to estimate your income, deductions and tax liability. A valid extension requires a reasonable tax estimate indicated on Form 4868, even if the amount due isn't paid with the extension. So don't delay! If you need more time to file, gather your tax information, contact your tax preparer and request an extension estimate so a properly filed extension can be furnished to the IRS before the 18th!
What If I Can't Pay My Taxes?
Don't panic! You're not alone; many taxpayers have found themselves in financial distress and unable to pay immediately. If you cannot pay the full amount of taxes you owe, you should still file your return (or extension) by the deadline and pay as much as you can to avoid penalties and interest. You also should contact the IRS to discuss your payment options, such as a short-term extension to pay, an installment agreement or an offer in compromise. In some cases, the IRS may even be willing to waive penalties. Remember though, no matter what option you choose, don't ignore your tax obligations; they won't go away but will likely get worse, resulting in tax liens or garnishment of wages. Remember, the IRS is far more willing to work with you if they believe you're making reasonable efforts to resolve the issue on your end!
Common Business Management Mistakes
As a small business owner, managing the day-to-day operations of a company can be challenging. Below are a few common business mistakes that are often overlooked but can be easily avoided:
  • Thinking "I can do it all myself" - You should use your skills to manage and grow the business, not to perform daily tasks that can be delegated.
  • Ignoring your professionals - Stay in contact with each of them throughout the year. The best time to solve or prevent problems is before they become larger. Remember, once the tax year is over, it is difficult for tax professionals to provide tax planning!
  • Relying too much on professionals - It is your duty to evaluate their performance. Remember, as the business owner, you know the business BEST!
  • Falling behind in record-keeping - Procrastination is the enemy. When data is current, you will receive better advice from professionals and make more reliable decisions. Establish and implement policies and procedures from the beginning for proper record-keeping.
  • Not using "reality checks" regularly - All bank accounts, customer receivables, inventories, and vendor payables should be regularly reconciled.
©  2017 Padgett Business Services