Tax Tips Newsletter
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April 2016 - Vol 11, Issue 4
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Greetings!
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We are nearing the end of another extremely busy tax season. If you got your info in by or on the cut off date, we have or will complete your return. We will probably get to some beyond that date and will be finishing up in the next few days.

As I mentioned in last month's newsletter, we will not be working over this weekend, April 16 and 17 and plan to finish on Friday, April 15. We will be back in the office on Monday to finish e-filing returns and extensions and tie up any loose ends.

As of Friday, April 22, the office will be closed on Fridays. I will be taking some vacation time in the next few months but there will be someone in the office to help you during the time that I'm gone. As always, e-mail is always the best way to reach us.

Again, your referrals are always appreciated and now... it's back to finishing those last few returns.

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Have you fallen behind on filing prior year federal income tax returns? Here's a reason to catch up: You could lose the benefit of payments made in those earlier years.

In general, you have three years from the original due date of your tax return to claim a refund of income taxes withheld from wages as well as other payments. That means time is running out to claim payments made during 2012. The three-year period for filing an original 2012 federal income tax return ends April 18 (April 19 if you live in Maine or Massachusetts).

Here's what to do.

* Gather copies of 2012 information. You can request a free wage and income transcript from the IRS online or by mail.

* File your 2012 return on 2012 forms. That way you can take advantage of the correct exemptions and deductions as well as available tax credits.

* Mail the return. Generally, past returns can't be e-filed. For regular mail, the postmark date is considered the filing date. Get a postal receipt to verify that you met the deadline.

Contact me if you have questions about catching up with prior year taxes. I'll help you get back on track.
Checklist
If you're an estate executor and you're required to file an estate tax return, the IRS has a new form for you: Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent. The form is designed to report to the IRS and to the beneficiaries the final estate tax value of property distributed or to be distributed from the estate. A law passed last summer added this requirement to the task list of executors and others who have to file estate tax returns after July 31, 2015. The reporting ensures consistency between the value of the property for estate tax purposes and the basis a beneficiary reports for income taxes. Unless an exception applies, the beneficiaries can claim no more than that value when the property is sold or disposed of.

If required, Form 8971 is filed separately from the estate tax return and includes a schedule that you provide to each beneficiary. The form is due within 30 days after the estate return is filed or 30 days after the due date of the estate return, whichever is earlier. However, because this is the initial year of the filing requirement, the deadline is extended to June 30, 2016, for returns that would have been due before that date.

Contact me about your tax-related responsibilities as the executor of an estate.
Tax Tip of the Week: Are you planning on buying a new car this year and want to look at a "green" car? Some "green" cars still qualify for tax credits so check before you buy. Read this article for some updated info.

Business Tip of the Month: How do you price your items or service that you sell? There is a method to pricing and your bottom line will show how you're doing. Read this article for some good tips on what goes into pricing.

Financial Tip of the Month: Does a prepaid debit card make sense for you? Do you not like to carry cash or use credit cards? Read the pros and cons of using a prepaid card and if it would be beneficial for you.

Fraud Alert: We all know someone who has met that "special someone" via an online dating service - some successes, some not. How about the ones that you read about in a magazine or see on the news shows and one of the courters is asking for money... and she/he sends the money!!! Unfortunately, this happens quite often and it's not only heart breaking and humiliating, but it can wipe you out financially. Read this article and be informed.
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Sincerely,
Linda Heineman
Linda L. Heineman, CPA

phone: 626-577-0979