Updated Tax Information For 2014
Tax Information for 2014
With the New Year upon us, here is some information that may help you with your taxes.
STANDARD MILEAGE RATES
56¢ per mile driven for use of a car (van, pick up truck, or panel truck) for business purposes.
23.5¢ per mile driven for medical expense purposes or household moving expense purposes.
14¢ per mile driven in service of charitable organizations.
Rather than use the applicable standard mileage rate, the taxpayer has the option to use the actual costs of operation. Note that the business standard mileage rate cannot be used for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming an Internal Revenue Code Section 179 deduction for the vehicle and cannot be used for more than 4 vehicles used simultaneously.
INCOME TAX RETURN DEADLINES AND EXTENSIONS
Individuals:
April 15, 2014 – Individuals on a calendar year basis
15th day of 4th month after close of the fiscal year – Individuals on a fiscal year basis
Automatic 2 month extension if taxpayer is U.S. citizen or resident alien and on the regular due date of the return, the taxpayer either (1) lives outside the U.S. and Puerto Rico and their main place of business or post of duty is outside the U.S. and Puerto Rico, or (2) is in military or naval service on duty outside the U.S. and Puerto Rico. This extension extends the time to file the return and pay taxes, but interest accrues on the unpaid taxes if not paid by the regular due date. To get the extension, a statement must be attached to the tax return explaining which of the 2 situations qualify the taxpayer for the extension.
If the taxpayer got the automatic 2 month extension, the taxpayer can request an additional 4 month extension to file the return by using IRS Form 4868. Although the automatic 2 month extension extends the time to pay the associated tax, the additional 4 month extension does not extend the time to pay the associated tax. Interest accrues on the unpaid amount of tax and penalties may apply.
Automatic 6 month extension for individual taxpayers not eligible for the automatic 2 month extension can be obtained by filing IRS Form 4868 by the regular due date of the return or using the IRS’ e-file system. The extension makes October 15, 2014 the due date for filing the tax return. Like the automatic 2 month extension, this extension extends the time to file the tax return, but, unlike the automatic 2 month extension, this extension does not extend the time to pay tax. A taxpayer is not eligible for the automatic 6 month extension if the taxpayer wants the IRS to figure the taxpayer’s tax or if the taxpayer is under a court order to file by the regular due date.
Taxpayers who are out of the country may request an additional 2 month extension beyond the automatic 6 month extension. To request the additional 2 month extension, the taxpayer must send a letter to the IRS before the expiration of the automatic 6 month extension period explaining the reasons for the requested additional 2 month extension period.
If a U.S. citizen or resident alien taxpayer is outside the U.S. and needs more time to meet the bona fide residence test or the physical presence test to qualify for the foreign earned income exclusion or the foreign housing exclusion or deduction, the taxpayer must file IRS Form 2350. If the request for extension is granted, the extension is generally to 30 days after the date the taxpayer can reasonably expect to qualify for exclusion or deduction under either the bona fide residence test or the physical presence test.
Partnerships:
Form 1065 is due by the 15th day of the 4th month after the end of the partnership’s tax year. A partnership may file Form 7004 for an automatic 5 month extension of time to file the Form 1065 return. An electing large partnership may file Form 7004 for an automatic 6 month extension of time to file the Form 1065-B return. Filing the form does not extend the time for payment of any tax.
For partnerships that keep their records and books of account outside the U.S. and Puerto Rico, a 2 month extension of time to file, to the 15th day of the 6th month after the end of the partnership’s tax year, can be obtained by attaching a statement to the return stating that the partnership qualifies for the extension of time. For such partnerships filing Form 1065, an additional 3 month extension can be requested by filing Form 7004. For such electing large partnerships filing Form 1065-B, an additional 4 month extension can be requested by filing Form 7004.
Corporations:
Form 1120 or 1120S (depending upon whether it is a C corporation or an S corporation) is due by the 15th day of the 3rd month after the end of the corporation’s tax year. Corporations filing Form 1120 or 1120S may file Form 7004 for an automatic 6 month extension of the time to file the return. As with partnerships, filing Form 7004 does not extend the time to pay any associated tax.
Employers:
January 31, 2014 – Due date for Form 940 (federal unemployment tax (FUTA)) return; No extensions are permitted.
QUARTERLY TAX FILING DEADLINES
Individuals:
Form 1040-ES (estimated taxes) – Due by the 15th day of the 4th, 6th and 9th months of the tax year and the 15th day of the 1st month after the end of the tax year (For most individuals, this will be April 15, June 16 (June 15 is a Sunday), September 15, 2014 and January 15, 2015)
Employers:
Form 941 or 944 (Social Security and Medicare taxes and income tax withholding if wages paid are subject to withholding or Social Security and Medicare) – Due by April 30, July 31, October 31, 2014 and January 31, 2015.