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Tax Law Changes

  • By Lauri Paxton
  • 10 Sep, 2015
Part of the value of utilizing a bookkeeping service is that we stay abreast of current changes in tax laws. Did you know there were 55 tax benefits extended in the American Taxpayer Relief Act of 2012 that expired on December 31, 2013 that affected this year’s tax filing?
The tax codes are constantly changing and these changes can easily be missed if you aren’t utilizing a professional service. What it could mean to you as a taxpayer is that you could be leaving money on the table when you file your tax return come next year.
If you’re a business owner these changes in Business Due Date Tax liability may apply to you.
On July 31, 2015, the President signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (Highway Act). In the Highway Act, there are several critical changes to current tax law. Some provisions are effective immediately while others are delayed for future years. The due dates for business tax returns have changed.
  • C corporations will generally be due the 15th day of the fourth month after year end. This is April 15 for calendar year corporations.
  • C corporations with a June 30 year end will continue to be due on the 15th day of the third month, which is September 15, until tax years beginning after December 31, 2025.
  • Partnership returns will be due the 15th day of the third month after year end. For calendar year partnerships, this will be March 15.
  • S corporations will be due the 15th day of the third month after year end. For calendar year S corporations, this will be March 15.
These due dates are for tax years beginning after December 31, 2015. The first tax return impacted by these changes will be the 2016 tax returns.
Obamacare will play a significant role in next year’s returns. The penalty for failure to maintain minimum essential coverage for individuals in 2015 will be the greater of $325 or 2 percent of income. This is a 300%+ jump from the 2014 penalty of $95, or 1 percent of income. For families, the penalty is the greater of $975 or 2 percent of income. This compares to the $285 in 2014.
These are only a few of the changes that may affect businesses in the upcoming tax year, so it’s best to be aware and plan ahead.
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