Daily Tax Update - April 14, 2006

The IRS reminded individual taxpayers that they can request an automatic six-month filing extension. An extension grants extra time for filing the tax return only, not for paying any taxes due. Taxpayers will owe interest on any past due tax and may be subject to a late payment penalty if payment is not made by the original due date of the return.

  • The request must be made by the due date of the return, which is April 17, 2006, for all states except the District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New York and Vermont. Taxpayers in these states have until April 18, 2006, to file and pay because of the Patriot's Day Holiday on April 17 in Massachusetts, where the Andover Service Center is located.
  • The IRS reminds extension filers that they can electronically file their returns until October 16. Last year, nearly 1.8 million taxpayers filed electronically after the April deadline.

As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving.  Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them.  Read  more information on Steptoe's tax practice