If you do not adhere to tax deadlines to file, there may be penal consequences. So , this post is a reminder to all that by Oct. 15 , you must do four important tax obligations. These are :
Extended tax return due date.
If you had applied for an extension of time for filing tax return -1040 forms, the six months extensions finish on 15th October failing which you may end up paying late or non-filing penalties based on any outstanding tax. You can use our calculator for computing penalty for late filing or paying taxes .
2. Extended Foreign bank account reporting date.
Do you have any cash in a foreign account. If yes, under the US tax law, you need to report the foreign funds and deadline for that ends on April 15 like your tax filing date. If you applied for the extension of foreign bank account reporting (like tax return) , the extension date deadline is 15th October .
FinCEN Form 114
Please note that the foreign bank account reporting is done on FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), electronically with the Financial Crimes Enforcement Network (FinCEN)
There is another related reporting which is on a separate from IRS Form 8938, Statement of Specified Foreign Financial Assets required under the Foreign Account Tax Compliance Act, or FATCA,.
3. Contribute to your self-employment retirement accounts.
Even though , the Tax Cuts and Jobs Act (TCJA) pruned the above-the-line deductions, the one for self-employment retirement savings is still there. So contribution to retirement savings is a good plan for every self-employed taxpayer. The date of contribution to retirement plans automatically extends if If you are given an extension to file your annual tax return. Therefore, you still have time up to 15th October to set up or contribute to SEP it for the prior tax year. Here is one Self Employed SEP IRA Calculator
4. Don’t Forget to lower the balance in over-funded IRA.
There is a limit on funding traditional or Roth IRA .If you cross the limit , you will be charged with an over-contribution penalty@ 6 per cent penalty on the combined value of all your IRAs as of the end of the tax year. Now, in order to see that the balance in these funds is not in excess of limits, the last date is Oct. 15 which is extended with the grant of extension of your filing tax return for the tax year.Get more details on this IRA excess contribution correction process in IRS Publication 590-A.