As we approach the end of the year, here are some important reminders I want you to know about to prevent any unpleasant tax surprises.
This year, December 31st falls on a Saturday. To make sure a payment qualifies as a deduction in 2016 make sure the payment is postmarked by December 30th (unless you find a post office that is open on Saturday, December 31st).
If you are paying fourth quarter 2016 estimated income taxes, you need to pay by the end of the year in order for federal tax to be deducted on the Iowa return and Iowa taxes to be deducted on the federal return.
Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.