The 2016 tax filing deadline is finally upon us. Today, April 18 is the deadline by which U.S. taxpayers must file and pay their taxes for the 2015 calendar year. While the deadline is roughly the same each year, and shouldn't therefore be a surprise to anyone, some taxpayers may still not have all of their tax affairs in order.
The 2016 April 18 tax deadline is quickly approaching and, barring special circumstances, taxpayers are expected to both file and pay their taxes on time. While the Internal Revenue Service fully expects the vast majority of U.S. taxpayers to comply with the April 18 tax filing deadline, the agency isn't completely unforgiving when it comes to cutting taxpayers who find themselves in extenuating situations some slack.
While no one enjoys doing their taxes, to avoid costly penalties and fees, it pays to do them correct the first time. Despite what a taxpayer may think, the Internal Revenue Service has numerous resources at its disposal which helps the agency easily identify certain tax mistakes. Not only can mistakes made on a tax return result in a larger tax bill and the accrual of tax penalties, but it can also delay the processing of a tax return.
When it comes to taxes, most Americans are actively seeking ways to reduce the amount they pay. While it's virtually impossible, not to mention illegal, for a working individual to completely avoid paying taxes; there are ways to reduce tax burdens. Some of the most effective tax savings strategies can be gleaned by examining the 2013 and 2014 tax returns of those taxpayers who reported earning $200,000 or more.
In the U.S., there are signs that the traditional nine to five job may soon be a thing of the past. From ride-share and cleaning services to vacation rentals and delivery services, today these and a host of offerings are readily available to Americans at a reasonable cost via the so-called gig economy.
This year, the normal April 15 tax deadline falls on Washington D.C.'s Emancipation Day which means that taxpayers have a few extra days to file and pay their taxes by the April 18 deadline. For many taxpayers, three extra days won't be a sufficient amount of time to get their financial affairs in order. Luckily, these individuals can take advantage of the Internal Revenue Service's tax extension program.
For business owners, understanding and navigating the numerous tax rules and regulations can be challenging. This is often particularly true when it comes to employment taxes. Legally, employers must deduct certain taxes from their employees’ paychecks including those that go towards funding Social Security and Medicare. In an effort to ensure that these government programs remain viable, employment taxes must be deposited on either a monthly or semi-weekly basis and again accounted for at the end of the tax year.
We've previously written about the new reporting requirements imposed upon U.S. citizens with foreign bank accounts. Under the Internal Revenue Service's Report of Foreign Bank and Financial Accounts and Foreign Account Tax Compliance Act, U.S. citizens with foreign assets valued at $50,000 or more are required to file the proper documents disclosing specific details about such assets.
There are times when an individual isn't able to pay his or her taxes or disputes the amount owed. Whatever the case, many hard-working and honest Americans struggle with tax debt problems. Previously, the IRS took action to handle these cases by sending notices to delinquent taxpayers and requesting payment. A taxpayer then had the options to work with the agency to sort out a repayment plan, have a portion of his or her tax debt forgiven or dispute the matter.
In addition to costly fines and penalties and the threat of possible time behind bars, the Internal Revenue Service just gave taxpayers another motivating reason to pay their taxes one time. Earlier this month, members of the U.S. Congress passed a major highway and transportation bill known as the Fixing America's Surface Transportation Act or FAST Act.