By Paul N. Gada, Toolkit Staff Writer
The IRS has announced that taxpayers will have until Tuesday, April 17, 2007, to file 2006 individual tax returns (and certain other forms) and pay any taxes due. The filing date was extended because April 15 falls on a Sunday in 2007 and the following day, April 16, is Emancipation Day, a newly instituted legal holiday in the District of Columbia.
"This year, taxpayers have additional time to file and pay beyond the traditional April 15 deadline," said IRS Commissioner Mark W. Everson. "As we always do, we encourage taxpayers to get an early start on their taxes to make sure they have plenty of time to accurately prepare their return."
Under a federal statute enacted decades ago, legal holidays observed in the District of Columbia have nationwide impact on federal tax deadlines. IRS officials became aware of the application of this statute with respect to the April 16 Emancipation Day holiday only recently, after forms and publications for the 2006 tax year had gone to print. These forms and publications will not be updated, but the IRS website will include information on the new filing deadline.
Among the forms and IRS actions that the new April 17 deadline apply to are:
- 2006 federal individual income tax returns (electronically filed or on paper)
- 2006 Form 1041 filed by estates and trusts that report their income on a calendar-year basis and any balance due
- 2006 Form 1065 filed by partnerships that report their income on a calendar-year basis
- extension requests for any of the above-mentioned forms
- tax year 2006 contributions to a Roth or traditional IRA
- individual estimated tax payments for the first quarter of 2007, as well as estimated tax payments of corporations, estates and trusts that are calendar-year taxpayers
- individual refund claims for tax year 2003, subject to the regular three-year statute of limitations
- the March tax deposit for employers that deposit withholding taxes on a monthly basis
- withholding tax deposits for larger employers, subject to the next day deposit rule
According to the IRS, most taxpayers will not have to change their plans as a result of the one-day extension. Statistically, three out of four individual filers get refunds and those claiming refunds generally file early in the tax season.
Although having an extra day to file can always come in handy, don't get too used to this luxury. Next year, there will not be a conflict involving Emancipation Day. April 15 falls on Tuesday in 2008, so the normal deadline will apply.
Looking ahead, the next year that Emancipation Day could affect filing deadlines is 2011. Mark your tax calendars now and have a happy filing season.
For more help with the many tax changes that may affect you for the 2006 tax filing season and beyond, take a look at the CCH Toolkit Tax Guide 2007. This easy-to-understand book helps taxpayers--including individuals and entrepreneurs--identify the benefits before them and manage their taxes so they can better prepare their 2006 tax returns, as well as begin planning for 2007. CCH Toolkit Tax Guide 2007 is available in major retail and online bookstores nationwide; via the CCH Business Owner's Toolkit bookstore; or by calling 1-800-248-3248.
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- IRS Outsources Some Debt Collection Activity
Added to the news on February 2, 2007.
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