There is a lot of possible changes right now with tax law for 2009. Those changes could mean a big change for you in how much tax you pay in 2009, what is income, what isn’t, whether AMT (alternative minimum tax) is even around and what’s deductible. And, believe it or not, that could make a big difference in how you file your 2008 return. That’s why this next piece of information maybe the best advice you get for your 2008 return.
File an extension. You need to file Form 4868, automatic 6 month extension for your individual income tax return, by 4-15-09. The extension allows you more time to file your return (and by the way, to fund your retirement fund as well) but it doesn’t give you an extension of time in which to pay your taxes. That’s why we always ask our clients at DKTS to send in their tax information as soon as possible, even though we plan on filing an extension. We’ll do an estimate of the tax due so that there won’t be a bunch of penalties and interest due.
You’ll also need to file an extension for your partnerships (or LLCs taxed as a partnership). Use Form 7004 for that. It will also need to be filed by 4-15-09, but this year will only get you an extension to 9-15-09.
And finally if you have an S Corporation or C Corporation with a 12-31-08 year end, you’ll use Form 7004 to file an extension. You have to get that extension filed by 3-15-09.
In a few months, we’ll have some idea about what might become law and what is definitely going away. At that point, we can look at whether it’s time to file the returns, or wait until later in the year.