I realize that this is the official last day of the 2007 tax filing season – the extended deadline for filing your federal and state income tax returns. But for me, for reasons I have probably discussed here in an earlier posting, the tax season was over last night - I no longer work on 1040s on the last day of the season.
I just wanted to make two points on this the last day:
(1) It is very important that you get your federal and state income tax returns, or an automatic extension request, in the mail today (postmarked by midnight), even if you are not sending all, or any, of the money you owe your “uncles”! The federal penalty for paying late is .5% (.005) of the balance due per month. The penalty for filing late is 5% (.05) of the balance due per month – 10 times more!
(2) Do not waste your money by sending your tax returns registered mail - return receipt. It does not mean a damned thing! The postmark is all that counts. At a continuing education seminar many years ago we heard about a tax preparer who sent an empty envelope to the IRS registered mail – return receipt on the 15th of every month. If there is a problem with the filing date in the future “Sam” will put much more weight on your sworn testimony, or that of your tax professional, that you, or he, took the envelope to the Post Office and placed it in the mail box on April 17th than if you have a signed postal receipt from the IRS.
I will be returning to regular daily posting tomorrow or Thursday.
To repeat – Thank God It’s Over!!!
I just wanted to make two points on this the last day:
(1) It is very important that you get your federal and state income tax returns, or an automatic extension request, in the mail today (postmarked by midnight), even if you are not sending all, or any, of the money you owe your “uncles”! The federal penalty for paying late is .5% (.005) of the balance due per month. The penalty for filing late is 5% (.05) of the balance due per month – 10 times more!
(2) Do not waste your money by sending your tax returns registered mail - return receipt. It does not mean a damned thing! The postmark is all that counts. At a continuing education seminar many years ago we heard about a tax preparer who sent an empty envelope to the IRS registered mail – return receipt on the 15th of every month. If there is a problem with the filing date in the future “Sam” will put much more weight on your sworn testimony, or that of your tax professional, that you, or he, took the envelope to the Post Office and placed it in the mail box on April 17th than if you have a signed postal receipt from the IRS.
I will be returning to regular daily posting tomorrow or Thursday.
To repeat – Thank God It’s Over!!!
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