More taxpayers than ever are filing on October 15th
The Internal Revenue Service (IRS) predicts that more taxpayers than ever before have chosen to wait to file their 2018 individual tax returns until the October 15, 2019 extended deadline. This is thought to be due to the many changes brought about by the Tax Cuts and Jobs Act and the continuing flow of guidance from the IRS in response to that legislation.
IRS guidance since April 15th must be taken into account
Aside from the additional time available with an extension to process all of those changes, a number of developments have occurred since April 15. These developments can be taken into account when filing a tax return on extension:
- Additional guidance on the twenty percent deduction for pass-through entities
- Additional guidance on Qualified Opportunity Zones
- Additional guidance on the state and local tax deduction limit, including a safe harbor
- Expanded waiver of the underpayment of estimated tax penalty
- IRS letters sent to taxpayers, who may have engaged in virtual currency transactions
- Additional federal disaster declarations
- Pending corrections to the Tax Cuts and Jobs Act still not undertaken by US Congress
- Pending actions on expired tax provisions still not undertaken by US Congress
- Several areas of business-related guidance that could affect sole proprietors, partners, and S Corporation shareholders
Expertise is critical in dealing with recent tax changes
Federal tax expert Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst at Wolters Kluwer Tax & Accounting, is available to discuss these developments and their potential effect on tax returns filed on extension.
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