- April 13, 2015
-- As the federal tax return filing deadline nears, many taxpayers are scrambling to meet the deadline, and perhaps looking to file an extension to file their annual tax return.
Christopher Floss, Associate Attorney at Hoogendoorn & Talbot LLP (http://www.hoogendoorntalbot.com/
, is a leading attorney on income tax issues. His expert advice (http://www.quora.com/
Floss) guides clients through best practices for income taxes, estate planning, real estate transactions, and other related legal services. According to Floss, taxpayers are often confused about what an “extension”
means. Yes, taxpayers may file for an extension to file their tax return; however, any income tax that is due for the previous year has to be paid by April 15 in order to avoid additional interest and penalties.
The Internal Revenue Code provides a “safe-harbor”
rule for individual taxpayers, which requires taxpayers to pay either 100% of the amount of income tax assessed in the previous tax year or 90% of the income tax that is due for the filing year. Individuals that owe tax and have an adjusted gross income of greater than $150,000 need to pay 110% of the previous year’s tax liability to avoid additional penalties. If taxpayers think they will owe additional tax with their return, it’s important that they at least meet the safe-harbor provision to avoid failure-to-pay penalties and interest.
Floss and the lawyers at Hoogendoorn & Talbot LLP (http://www.hoogendoorntalbot.com/
), a leading firm in a variety of taxation matters, advise taxpayers to consult publications listed on the IRS website, or competent tax professionals, for further guidance on this topic.
Hoogendoorn & Talbot LLP, founded in 1985, is a Chicago based law firm that focuses on representing families, business entities and charitable organizations. Each year, the firm and its partners donate a portion of their time, talent and revenue both to secular not-for-profit entities and faith-based organizations.