Tax Deadline

It was the best of times. It was the worst of times. Thank you, Mr. Charles Dickens for describing the way April 15th makes us feel. Procrastinators delight. This year we have an extra three days to gather our deductions and money to file our federal income tax return.

In our younger years some of us used the excuse the dog ate my homework. The IRS does not allow that as a legit reason for not sending in your return on time. Nor will they accept the dog as a personal exemption even if he/she is a “part of the family.”

Ah, remember the days of the “Paperwork Reduction Act of 1995” or PRA that touted less forms, just sign your name at the bottom of the page. Somewhere along the way the PRA was forgotten and this year we had some new surprises to increase our return that can’t fit in a standard envelope anymore.

Most of us got a new form this year, 1095-A, B or C. A personal favorite is the new Form 8949, “Sales and Dispositions of Capital Assets,” which goes hand in hand with your 1099-B and Schedule D. Part 1 of 8949 asks for your short-term sales and whether it is categorized under provisions for A, B, or C. If you have some of all of those, you will need to file additional Forms 8949. Then, you have to repeat with long-term sales. By now you have added at least four more pages to your existing return. All the entries have to correspond to the entries on the 1099-B UNLESS they are not accurate. Is that really what that form says at the bottom of the page? YES.

Next step, rent a truck to carry said tax return to the post office. Some will scoff and brag, “I filed my taxes electronically.” Sounds like a bully of an idea if only we all had a masters degree in accounting.

If all the excuses don’t work, file an extension, but remember to pay your taxes that your owe even though you haven’t got a clue how much they are. That would be Form 4868, a honey of a form.