June 2019 Tax Snacks

tax snacksTax Snacks: Bite-size tax news and information on the fly

Dates to Remember

July 31:

  • Employee benefit plans (Forms 5500) are due for calendar-year plans

September 16:

  • Extended calendar-year corporate returns are due (Forms 1120; 1120-S)
  • Third quarter 2019 estimated tax payments are due

September 30:

  • Extended calendar-year estate and trust income tax returns are due (Forms 1041)

October 15:

  • Extended individual income tax returns (Forms 1040) are due
  • Foreign bank account reports (Forms FinCEN 114) are due

Draft 1040

The IRS has announced that it is finalizing the format of next year’s Form 1040. The new postcard-wannabe format introduced for 2018 was widely panned by taxpayers, tax practitioners, and the IRS Taxpayer Advocate’s office. However, those panners will remain disappointed, as there appears to be no plan to change the inexplicably goofy format anytime in the near future.

Passports to be revoked for certain delinquent taxpayers

International travelers who owe the IRS significant amounts of money may be in for a rude awaking and disruption of travel plans. The IRS announced earlier this year that it will be working with the State Department to deny or revoke passports for certain taxpayers who are behind on their IRS debts. More details may be found here.

Massachusetts tax surcharge may be revived

Last year, a proposal to change Massachusetts’ constitution to impose a new 4% tax on individual incomes greater than $1 million was struck down by the courts, but a new version designed to avoid legal challenge has cleared its first hurdle to passage. The so-called “millionaires tax” would be imposed on individuals (but also indirectly on businesses, for those operated as pass-through entities) beginning after 2022. To become law, though, it must be approved by the legislature in two consecutive sessions, and then also approved by the people via ballot. It has been approved by the legislature in the first session (2019-2020), and will be addressed again next year, potentially followed by a ballot vote no earlier than November 2022.

Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.