Deadlines
The IRS has also made some changes to the filing deadlines, which rheumatologists who own a practice need to be aware of.
Beginning on Jan. 22, 2017, employers must use a revised I-9 Employment Eligibility Verification form. “If the form is not filled out correctly, your practice could be liable for penalties,” says Kelly Garrison, CPA, tax partner at Frazier & Deeter CPAs & Advisors in Atlanta.
Additionally, the deadline for Form 1120 U.S. Corporation Income Tax Returns has been moved back to April 15 (April 18, 2017, due to the holiday schedule) vs. the traditional March 15 deadline, Ms. Garrison notes. However, if you file Form 1065 U.S., the return for partnership income, or Form 1120S, the U.S. income tax return for S Corporation income, you need to get into gear earlier. The deadline for both forms is now March 15. A six-month extension period applies to both forms.
Finally, Mr. Sullivan offers a friendly reminder to be sure to keep accurate records and follow the government’s tax rules.
“Taxpayers love to ask tax preparers how much to deduct. Generally, the answer is ‘any ordinary and necessary expense that you actually paid,’” he says. “Playing within the rules is the best way to avoid a costly tax audit. Retain all canceled checks, receipts and other data and documents that form the basis of your income and deductions. You may need these to prove your returns’ accuracy and completeness to a taxing authority. Don’t worry about claiming large deductions or losses, as long as they are legitimate.”
Karen Appold is a medical writer in Pennsylvania.
