IRS HAS $1 BILLION OF UNCLAIMED REFUNDS

The IRS has just announced that more than $1 billion in tax refunds for the year 2008 remain unclaimed by a million taxpayers who failed to file a return for that year. The tax law provides a three-year period for claiming a refund when no return is filed. That means these individuals must file a tax return for 2008 no later than Tuesday, April 17, 2012, or their refunds will be lost.

IRS REOPENS OFFSHORE VOLUNTARY DISCLOSURE INITIATIVE

To encourage taxpayers with assets in offshore accounts to bring their tax filing obligations current, the IRS has reopened its "offshore voluntary disclosure program."

Similar programs in 2009 and 2011 resulted in the collection of more than $4.4 billion of taxes owed.

The new program has a few key differences from the previous two, including no deadline for applying and a top penalty increase from 25% to 27.5%. The IRS warns that the terms of the current program could be changed at any time.

If you have foreign accounts and need details or filing assistance, contact our office at (518) 798-3330.

DOES THIS APRIL 2 DEADLINE APPLY TO YOU?

If you reached age 70½ last year, April 2, 2012, could be an important deadline. That's the last day you can take your required minimum distribution (RMD) for 2011 from your traditional IRAs. If you miss that deadline, the penalty could be a 50% excise tax on the amount you should have withdrawn.

IT'S TAX PAYBACK TIME

If you took certain actions in a prior year, you may now have additional taxes due on your 2011 tax return. Here are the details.

HOME BUYER CREDIT: If you bought a home in 2008 and took the first-time home buyer credit, you have another repayment installment due with your 2011 tax return. The 2008 tax credit was just an interest-free loan that you have to pay back over a 15-year period.

ROTH CONVERSIONS: If you converted a traditional IRA to a Roth IRA in 2010 and opted to split the tax due from the conversion between 2011 and 2012, your first half of the tax` is due on your 2011 tax return.

THERE'S STILL TIME TO CUT YOUR 2011 TAX BILL

Are you still dealing with your 2011 tax return? Do you owe a bigger tax bill than you expected? Are you missing a tax break because your adjusted gross income is too high? Would you like a bigger refund? Don't despair. You might still have time to make some changes.

UPCOMING TAX DEADLINES

March 15 - 2011 calendar-year corporation income tax returns are due. Extensions may be filed to give until September 17, 2012, to file.

March 15 - Deadline for calendar-year corporations to elect S corporation status for 2012.

April 2 - Deadline for payers who file electronically to send copies of 2011 W-2s to the Social Security Administration.

April 2 - Deadline for payers who file electronically to file 2011 information returns (such as 1099s) with the IRS.

DEADLINE FOR ELECTING S CORPORATION STATUS IS MARCH 15

If you own a small corporation, you have until March 15, 2012, to choose S corporation status for this year. In order to become an S corporation, you'll need the unanimous approval of all shareholders.

USE IT OR LOSE IT - DEADLINE APPROACHING

If your flex plan at work allows a 2½ month grace period for using the pre-tax dollars you set aside for 2011, be aware that a final deadline is approaching. You have until March 15, 2012, to use the funds you set aside for 2011 or you forfeit any leftover dollars.

PAYROLL TAX CUT IS EXTENDED THROUGH 2012

Congress passed an extension of the 2% payroll tax cut that had been scheduled to expire at the end of February. The extension means 160 million working Americans will continue to pay social security tax on their wages at a 4.2% rate for the rest of 2012, rather than at a 6.2% rate.

BE DILIGENT ABOUT SAVING YOUR TAX RECORDS

You're probably getting ready to sort out last year's financial records and prepare for this year's recordkeeping. But what should you keep and what can you throw away? Here are some suggestions.