October 15 – Tax Extension Due Date

Did you file a tax extension for your 2014 tax return?  Remember, this one and only tax extension will expire on October 15, 2015.  If you don’t file before this date, you are subject to late filing penalties so please contact our office so we can assist in meeting this filing deadline.

Individual federal returns are subject to a penalty of 5% of the tax due for each month, or part of a month, up to a maximum of 25% of the tax due.  Also, if you are required to file a state return, the state will also charge a late-file penalty. The filing extension deadline for individual returns for most states is also October 15.

If you operate a business or have rental properties, October 15 is also the final deadline for adopting new capitalization and repair regulations retroactively by filing IRS Form 3115, Application for Change in Accounting Method, which will allow you to expense items on your 2014 return that were capitalized (depreciated) in prior open years that are now allowed to be expensed under the new regulations.  If you’ve already filed your 2014 return, it can be amended to adopt the new capitalization and repair regulations, but the amended 2014 return will need to be filed by October 15.  If the new regulations are not adopted retroactively, they will only apply prospectively.

If our office is waiting for some missing information to complete your return, we will need that information at least a week before the October 15 due date.  Please call this office immediately if you anticipate complications related to providing the needed information, so that a course of action may be determined for avoiding the potential penalties.