The IRS Delays the Filing Deadline from April 15th to July 15th

The IRS Delays the Filing Deadline from April 15th to July 15th

tax planning
By Anthony Diosdi Treasury Secretary Steve Mnuchin made the following announcement on Twitter “At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” This means that in addition to providing taxpayers with additional time to pay their 2019 income tax liabilities, the IRS has extended the 2019 filing deadline from April 15th to July 15th. If taxpayers file extensions, they will be able to extend the filing deadline for their 2019 tax returns to October 15th.Anthony Diosdi is a partner and attorney at Diosdi Ching & Liu, LLP located in San Francisco, California. Diosdi Ching & Liu, LLP also has offices in Pleasanton, California and Fort Lauderdale, Florida.…
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The Trump Administration will Likely Delay the April 15th Tax Filing Deadline in Response to the Coronavirus Outbreak

The Trump Administration will Likely Delay the April 15th Tax Filing Deadline in Response to the Coronavirus Outbreak

tax return
By Anthony Diosdi The Wall Street Journal recently reported that in response to the coronavirus outbreak the Trump administration will most likely delay the deadline for filing individual income tax returns. At this point it is unclear how long the deadline would be extended or who would be eligible to delay the filing of their tax returns. The Trump administration plan may also waive penalties associated with not timely filing tax returns, penalties associated with not timely paying taxes, and interest associated with not timely paying tax liabilities. The details of this Trump administration’s plan are still being worked out. As more details are available, we will write a complex article discussing the details of the plan.  Anthony Diosdi is a partner and attorney at Diosdi Ching & Liu, LLP…
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Getting Divorced in 2019? Speak to a Tax Lawyer Before You Agree to an Alimony Order

Getting Divorced in 2019? Speak to a Tax Lawyer Before You Agree to an Alimony Order

Tax Law, tax return
If two spouses get divorced and have a substantial income discrepancy, they may be subject to an alimony order. Until 2019, the individual paying alimony would get a tax break, as they could deduct the payments from their taxes to lower their liability. The spouse receiving alimony would pay taxes on the funds, though that tax rate was generally much lower because of their lower tax bracket. The Tax Cuts and Jobs Act significantly changed how alimony payments are taxed, effective for divorce agreements after December 31, 2018. It is highly important to discuss the implications of an alimony order with a tax lawyer in San Francisco before you sign an agreement. Reversing Tax Benefits Under the new law, the person paying the alimony no longer gets to deduct alimony…
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How Long Can the IRS Audit Your Tax Return?

How Long Can the IRS Audit Your Tax Return?

tax return
Many people are concerned about a possible IRS audit, as anyone can be audited, even without suspicions of misconduct. How long do you have to worry about a particular return being audited? It depends on the situation, and the following are some timelines for IRS audits. If you receive notice of an audit, you should immediately contact an experienced tax lawyer in San Francisco. Three years - Generally speaking, the IRS has three years from the due date of your returns to begin an audit. However, there are many exceptions to the three-year rule. Six years - If the IRS believes that your returns included at least a 25 percent understatement of income, it has six years to conduct the audit of those specific returns. For example, if you earned…
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