The last few days of 2016, many Californians enjoyed spending quality time with family, friends, and other loved ones. However, while those final days were for reflection and reminiscing, the turn of the calendar means that it’s time to turn our attention to the future, and to assess and account for any and all 2016 tax obligations which must be reported in in the new year.
If you have yet to consider your tax obligations and other offshore reporting duties, it is wise to do so immediately. The filing season is already open in California. Furthermore, there are important changes to filing deadlines for the Report of Foreign Bank Account (FBAR) obligation. The lawyers of NewPoint Law Group can help you prepare and file your California state and federal taxes. To schedule a confidential consultation, call one of our law firm locations in either Roseville and Folsom at 1-800-358-0305.
California FTB Announces the Start of 2017 Tax Filing Season
The California Franchise Tax Board has announced that it is currently accepting tax filings for the 2017 filing season. The California FTB is the government agency tasked with administering, collecting, and enforcing the state income tax obligation. California taxpayers may also need to address additional tax obligations, such as payroll tax or sales tax, with other state tax agencies like the Board of Equalization and Employment Development Division.
The FTB is encouraging taxpayers and their tax attorneys to file their taxes online. The FTB claims that its MyFTB web portal has been enhanced, and that usage of the web site may expedite processing times.
Filing Income Taxes Can Allow You to Claim CalEITC
Last year, for the first time, California offered its own earned income tax credit known as CalEITC. CalEITC is separate from and in addition to any federal EITC you may be able to claim. Since the CalEITC is still new, many people have questions as to whether they qualify for this tax relief and how to apply. Essentially a household can qualify for CalEITC when a household in California has an adjusted gross incomes of $6,717 ( no qualifying children), $10,087 or less (one qualifying child), or $14,161 or less (two or more qualifying children). The tax lawyers of NewPoint Law Group can assess whether you may qualify for CalEITC or other tax relief.
IRS: Federal Tax Filing Starts January 23, 2017
When it comes to filing your taxes, California is open for business, but the federal government is still in the process of getting prepared. According to a recent IRS announcement, the first day to e-file federal income taxes is January 23, 2017. While many online tax preparation companies may encourage you to file federal before January 23rd, there is no benefit to doing so. Generally, these companies will simply hold your return until the IRS systems come online. Then, they will submit your filing as soon as practicable. Thus, at this stage, it is often more prudent to seek the one-to-one advice of a tax professional rather than submit early through a one-size-fits-all solution.
Beware of New 2017 FBAR Filing Deadline
For taxpayers holding even relatively modest amounts of wealth in foreign accounts and offshore trusts, the importance of assessing their FBAR and other offshore compliance duties cannot be overstated. Even seemingly minor, accidental acts of non-compliance can lead to large fines and penalties.
In 2017, the risk of a late filing is exacerbated by a new, expedited FBAR filing deadline. Traditionally, FBAR filings were due on June 30th and no extensions were available. For the first time this year, the FBAR filing deadline has been moved up to align with Tax Day on April 18, 2017. Furthermore, extensions are available as well. While certain mitigation provisions for accidental late filers are in place for this year, it is better to avoid attracting attention that could lead to an audit or other proceeding that encourages an IRS agent to engage in more thorough inquiries. And, since Tax Day is the new FBAR deadline, it would be wise to get used to this fact before mitigation provisions expire.
Work with Roseville and Folsom Tax Attorneys for Federal and California Taxes
If you have questions about state or federal income tax obligations, the tax lawyers of NewPoint Law Group may be able to help. Likewise, if you have concerns or problems regarding other tax obligations, like payroll tax issues, our team may also be able to help. To schedule a confidential consultation, call 1-800-358-0305 or contact us online today.