tax deadline Archives - Whalen & Company, CPAs

Ohio Tax Deadline Extended

Kathleen Hargrove on March 28, 2020

The Ohio Tax Commissioner announced Friday that Ohio will be following the federal government and IRS in extending the deadline to file and pay the state income tax.

The new deadline is July 15, an extension of approximately three months from the original deadline of April 15.

The Commissioner said the extension is intended to provide some relief to taxpayers and help offset some of the economic impact of the coronavirus and the public safety measures adopted to contain its spread.

As with the IRS extension, Ohio will be waiving penalty on tax due payments made during the extension. Also, thanks to a legislative agreement between Governor Mike DeWine and the General Assembly, there will be no interest charges on payments made during the extension.

The filing extension, and waiver of penalty and interest, will be available to those filing the Ohio individual income tax, the school district income tax, the pass-through entity tax, and to those taxpayers that have opted in to have the commissioner administer the municipal net profit tax through the state’s centralized filing system.

Individuals, estates, trusts and certain businesses making quarterly estimated income tax payments, have also been granted additional time to file and pay without penalty or interest. The first and second quarterly payments, normally scheduled for April 15 and June 15 for most taxpayers, have both been extended to July 15.

Please note not all Ohio municipalities have officially introduced extended deadlines for income tax reporting. This includes the due date for submitting income tax returns, tax balances due, and estimated tax payments. Unless a taxpayer has opted in to allow the Ohio Department of Taxation administer their municipal tax, the taxpayer is required to conform with the compliance requirements set forth by their applicable municipality.

We recommend that if possible, you still file your taxes now, especially if you think you will be getting a refund.

We will continue to monitor any updates from the Department of Taxation, and will keep you updated on any changes.

We’re An Essential Business

Kathleen Hargrove on March 22, 2020

On Sunday afternoon, Ohio Gov. Mike DeWine announced a stay-at-home order — or a shelter-in-place order — across the state amid the COVID-19 coronavirus pandemic.

Under this order, only essential businesses are permitted to stay open. It goes into effect at 11:59 p.m. Monday and will remain in effect until April 6, at which point state officials will reassess.

Accounting is considered to be an essential business, so we will continue to remain open and be available to you to serve your needs.

To view the order in full and for a complete list of essential businesses, please click here.

We understand that this is a stressful time right now, and we are committed to helping you in any way that we can.

We will continue to monitor this rapidly changing situation and keep you updated on any changes.

Thank you again for your understanding and patience.

Tax Deadline Extended

Kathleen Hargrove on March 21, 2020

Treasury Secretary Steven Mnuchin announced Friday that President Trump has directed him to move Tax Day to July 15, giving taxpayers more time to file their taxes in the midst of the coronavirus pandemic.

All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.

In addition, the IRS released IR-2020-58 on Saturday which has additional updates regarding this extended due date and the payment of federal income tax returns. Highlights from the notice include:

Due date will automatically extend from 4/15 to 7/15 – no extension forms are needed.

Payment, regardless of the amount, can also be deferred until 7/15, without penalties and interest. There is no longer a $1 million or $10 million limit. This applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

The period beginning on 4/15/20 and ending on 7/15/20 will be disregarded in the calculation of any penalty, interest or addition of tax for failure to file the federal income tax returns or pay the federal income tax postponed by the Notice.

Individuals who need an additional extension beyond 7/15 will need to file the proper extension form and pay the tax by 7/15.

Currently, this extension is only for those taxes due 4/15. This means the second quarter estimates due 6/15 will still be be due by that date.

The IRS still urges those individuals who have refunds to file as soon as possible and to file electronically. The IRS is continuing to accept tax returns and send refunds.

Please note that this extended due date is for federal returns only. Ohio and it’s municipalities have yet to announce extensions yet, but we will continue to keep an eye on this and notify you should this change.

The 2018 gift tax return deadline is almost here

Kathleen Hargrove on March 12, 2019

Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if it isn’t required.

Filing requirements

Generally, you must file a gift tax return for 2018 if, during the tax year, you made gifts:

That exceeded the $15,000-per-recipient gift tax annual exclusion (other than to your U.S. citizen spouse),
That you wish to split with your spouse to take advantage of your combined $30,000 annual exclusion,
That exceeded the $152,000 annual exclusion for gifts to a non-citizen spouse,
To a Section 529 college savings plan and wish to accelerate up to five years’ worth of annual exclusions ($75,000) into 2018,
Of future interests — such as remainder interests in a trust — regardless of the amount, or
Of jointly held or community property.

Keep in mind that you’ll owe gift tax only to the extent an exclusion doesn’t apply and you’ve used up your lifetime gift and estate tax exemption ($11.18 million for 2018). As you can see, some transfers require a return even if you don’t owe tax.

No return required

No gift tax return is required if your gifts for the year consist solely of gifts that are tax-free because they qualify as:

Annual exclusion gifts,
Present interest gifts to a U.S. citizen spouse,
Educational or medical expenses paid directly to a school or health care provider, or
Political or charitable contributions.

But if you transferred hard-to-value property, such as artwork or interests in a family-owned business, consider filing a gift tax return even if you’re not required to. Adequate disclosure of the transfer in a return triggers the statute of limitations, generally preventing the IRS from challenging your valuation more than three years after you file.

Be ready for April 15

The gift tax return deadline is the same as the income tax filing deadline. For 2018 returns, it’s April 15, 2019 — or October 15, 2019, if you file for an extension. But keep in mind that, if you owe gift tax, the payment deadline is April 15, regardless of whether you file for an extension. If you’re not sure whether you must (or should) file a 2018 gift tax return, contact us.

Get started on 2018 tax planning now!

Kathleen Hargrove on May 2, 2018

With the April 17 individual income tax filing deadline behind us, you may be hoping to not think about taxes for the next several months. For maximum tax savings, however, now is the time to start tax planning for 2018!

Tag: tax deadline

News & Tech Tips

Ohio Tax Deadline Extended

We’re An Essential Business

Tax Deadline Extended

The 2018 gift tax return deadline is almost here

Get started on 2018 tax planning now!