If you filed an extension for your Partnership C Corp, or Personal Income Tax Return, the automatic additional 6 months to file your return ends next Tuesday, October 15th. But this deadline has been further extended by the federal government for many who’ve been victimized by severe weather that occurred after April 15th of this year.
This affect taxpayers in almost every state.
The definition of severe weather is based on the Federal Emergency Management Agency (FEMA) declarations of individual assistance. This includes hurricanes, tornados, mudslides, wildfires, and other severe weather situations.
The individual extensions vary based on the government’s assessment of how difficult the situation was. The new due dates range from November of 2024 to May of 2025.
A list of these assessments are included in the following link.
https://www.irs.gov/newsroom/around-the-nation
It should be noted that filing your return by the extension due date only eliminates the Failure to File Penalty.This statutory addition maxes out at 25% of the amount owed and is assessed monthly.
This does not change the Failure To Pay Penalty which maxes out at another 25% and is charged at 0.5% monthly. All taxes are due and owing by the original due date of the return. Whether you requested an extension or not, you will still owe the Failure to Pay Penalty.
It adds up rather quickly, so get your returns filed today.
Let me leave you with this…
The monthly Consumer Price Index (CPI) numbers came in yesterday, and inflation actually ticked up a little bit. The change was so small that the markets didn’t react.
But the overall point is that it didn’t go down or stay flat. It went up a little bit.
We need to temper that news against the earnings reports that came in this morning. JP Morgan Chase, our nation’s largest banking institution actually declared that their good financial results, “were consistent with a soft landing.”
The back and forth and up and down of economic news is consistent. One day it’s good, the next it’s bad.
But until our economy straightens out, this is how it’s going to be.
The concept of a Soft Landing, or what others have termed a Goldilocks Economy, is the Unicorn of economic outcomes. It’s so rare, that with all of the bad economies we’ve had since the 70’s the Fed has only been able to engineer a total of one inside that period.
Depending on how you count it, that’s one out of five.
The consumer spending and jobs markets have been strong and resilient. This is what has kept us going to date, but all of that could change in an instant.
There are any number of Psychological, Financial, or Economic Factors that could change this. That’s why these are so rare.
I’m writing this to ask all of you to continue being conservative. The news will probably change daily but the management of our entities must remain steady.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
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Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
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