June Individual Tax Deadlines

With the famous April 15th deadline passed there is a tendency to put taxes on the back burner until 2016. However, there are several important deadlines in June that should not be missed:

June 15th

2nd Quarter Individual Estimated Tax Payment Deadline

This deadline is important for individuals who owed a significant amount of taxes for 2014 or typically pay in quarterly.   We would recommend paying in estimated tax payments throughout the year to avoid underpayment penalties for 2015 taxes, as well as to avoid a large tax bill.  In general, the underpayment penalty will only apply if you fail to pay at least the smaller of:

(1)     90% of your 2015 tax

(2)    100% of your 2014 tax

 If you decide not to pay in estimated tax payments, the following are the applicable 2015 interest and penalty rates for both Federal and state:

 

Federal – 3% annual interest rate on underpayments (rate as of 4/30/2015 subject to change)

NC – 5% annual interest rate on underpayments (rate as of 6/30/2015 subject to change)

 

June 30th

FBAR Filing Deadline

The FBAR form, Report of Foreign Bank and Financial accounts (FinCEN Report 114) is required to be filed by all United States individuals if:

(1)       the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and

(2)    the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

 

There are exceptions to this filing, but if you have foreign financial accounts it is important to discuss your filing requirements to avoid penalties for failing to file.