Tax Breaks 2010, Extension Deadline October 17, 2011, Off Shore Account Info from the IRS

There are as many as 10.1 million taxpayers who requested an automatic extension in filing their tax return. October 17th is the deadline for the extension, because the 15th of October of this year is on a Saturday.

The IRS also wanted taxpayers to know that they can e-File their 2010 tax retuur, even if they ae on extension.

If you live in a natural disaster area, then your deadline to file is October 31 of 2011.

Members of the military and those serving in Iraq, Afganistand and other combat zones don't have to file until at least 180 days after they leave the combat zone. (See ITS Publication 3)

In this same press release, the IRS remind small businesses to check for overlooked tax benefits, such as the new small business health care tax credit. The new health care tax credit is designed to encourage small business owners who meet certain requirements to offer health insurance to their employees. You can learn more about this by reading the instructions

You use Form 8941 to figure the credit Follow the instructions, or remind your tax person, to see if your small business qualifies.

TAX BREAKS FOR 2010

Taxpayers should also check various tax breaks extended or expanded by the recovery law and other recent tax legislation.

1. These include the Making Work Pay Credit
2. American opportunity credit and other higher education tax benefits for parents and students,
3. Rresidential energy credits for various energy-saving home improvements
4. Earned Income Tax Credit for low- and moderate-income workers and working families
5. Child tax credit and additional child tax credit for low- and middle-income families


The other BIG reminder from the IRS was to remind U.S. citizens and resident aliens that by federal law, they are required to report income from ALL sources, both foreign and domestic, INCLUDING income from foreign trusts and foreign bank and securities accounts. This information is to be provided to the IRS an Schedule B and could require additional reporting.

Note: People, the IRS is serious about this. If you have a foreign trust or foreign account, which may or may not have your name on it, however, you still receive income from the account, check with a Tax Attorney. You don't want the IRS to somehow find out that you are benefiting directly or indirectly from a foreign trust account. The new agreements which the IRS has initiated with foreign banking centers is not understood by many. An experienced Tax Attorney will be able to help you.


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