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Here are some important dates to remember for the month of October.

Monday - October 16, 2006

• Deadline for individuals, partnerships, LLC’s taxed as partnerships, and trusts who obtained a six-month filing extension to file their 2005 income tax returns.

Here are some important dates to remember for the month of September.

Friday - September 15, 2006

• Deadline for individuals and corporations to make the third quarter estimated tax payment for 2006.
• Deadline to file the 2005 corporate income tax return (for calendar-year C and S corporations that obtained an automatic six-month filing extension).

A new law has been enacted that increases the cost to taxpayers who submit an offer in compromise to the IRS.  In addition to a $150 user fee, a portion of the settlement amount must also be paid when requesting an offer.  For taxpayers who propose to make a lump-sum settlement, they must also submit 20% of the offer amount up front.  For offers that will be paid in monthly installments, all proposed installment payments must be made while the IRS investigates the offer.

On a bright note, if the IRS fails to process an offer within two years, the offer is deemed to have been accepted.

This law becomes effective with offers that are received by the IRS on or after July 16, 2006.

Here are some important dates to remember for the month of June.

Thursday - June 15, 2006

• Deadline for individuals and corporations to make the second quarter estimated tax payment for 2006.
• Deadline to file the 2005 individual income tax return for US citizens and residents living outside the US and Puerto Rico as of April 17, 2006. An additional four months to file the return may be requested by submitting Form 4868.

Here are some important dates to remember for the month of May.

Monday - May 1, 2006

• Deadline for filing Form 941 for the first quarter of 2006 to report income tax withholding and Social Security and Medicare Taxes.  If the taxes have been deposited in full and on time, the return can be filed by May 10.

Monday - May 15, 2006

• Deadline for partnerships and S corporations, which made a Section 444 election to use a fiscal year, to make any required payment and file Form 8752, even if no payment is due. This form can also be used to obtain a refund of a prior-year payment.

Here are some important dates to remember for the month of April.

Monday - April 17, 2006

• Deadline for filing individual income tax returns for 2005. Additional time may be requested by submitting an automatic six-month filing extension, Form 4868. However, this filing extension does not extend the time for paying the tax that is due on the return.
• Deadline for individuals to make the first quarter estimated tax payment for 2006.
• Deadline for filing income tax returns for calendar-year partnerships, limited liability companies, and trusts and estates for 2005.  An automatic six-month filing extension may be requested by submitting Form 7004.

Tuesday - April 18, 2006

• Due to a state holiday, individual taxpayers who file with the IRS Service Center in Andover, MA have an additional day to file their income tax returns.

Here are some important dates to remember for the month of March.

Wednesday - March 15, 2006

• Deadline for C and S corporations to file their 2005 tax returns. S corporations also need to provide Schedule K-1’s to their shareholders.
• Corporations can request a six-month filing extension by submitting Form 7004, Application for Automatic 6-Month Extension. 

Friday - March 31, 2006

• Deadline to file Form 1099 electronically with the IRS.
• Deadline to file Form W-3 electronically with the Social Security Administration.

Here are some important dates to remember for the month of February.

Wednesday - February 15, 2006

• Deadline for employers to obtain a new W-4 from an employee who claimed tax exempt in 2005 and would like to continue it for 2006.  

Tuesday - February 28, 2006

• Deadline for those who made payments to independent contractors and certain other payments to file Form 1099 with the IRS.  Due date is March 31, 2006 if reporting is done electronically. 
• Deadline for employers to file Form W-3, Transmittal of Wage and Tax Statement, with the Social Security Administration.

The following statistics are based on all offers in compromise that were submitted to the IRS during the years 2001 through 2004.

Tax Year 2004

• Number of offers received: 106,000
• Number of offers accepted: 20,000
• Percentage of total accepted: 19%
• Average amount of each offer: $14,000

Tax Year 2003

• Number of offers received: 128,000
• Number of offers accepted: 22,000
• Percentage of total accepted: 17%
• Average amount of each offer: $11,000

Tax Year 2002

• Number of offers received: 124,000
• Number of offers accepted: 29,000
• Percentage of total accepted: 23%
• Average amount of each offer: $10,000

Tax Year 2001

• Number of offers received: 125,000
• Number of offers accepted: 39,000
• Percentage of total accepted: 31%
• Average amount of each offer: $9,000

SOURCE: IRS Data Book, FY 2004, Publication 55b.