Storm-struck Counties Get One More Week To File Minnesota Taxes

Storm-struck Counties Get One More Week To File Minnesota Taxes

Minnesota authorities have extended the April 15 tax deadline by one week for taxpayers in 64 counties hit hard by last week’s winter storm.

The Minnesota Department of Revenue said individual taxpayers and businesses now have until April 22 to file their state income tax returns. They will not face late penalties or interest for submitting returns during that extra week.

The extension affects only Minnesota tax returns.  Federal returns still are due on April 15.

The new deadline follows Gov. Tim Walz’s declaration of an emergency because of Winter Storm Wesley and flooding from rapid snowmelts.

The order covers much of the southern part of the state, including the Rochester and Twin Cities metropolitan areas. Minnesota Revenue said the new deadline extends to taxpayers in these counties:

Anoka, Beltrami, Becker, Benton, Big Stone, Blue Earth, Brown, Carver, Cass, Chippewa, Chisago, Clay, Cottonwood, Dakota, Faribault, Fillmore, Freeborn, Goodhue, Grant, Hennepin, Houston, Isanti, Jackson, Kittson, Lac Qui Parle, Le Sueur, Lyon, Marshall, Martin, McLeod, Mille Lacs, Mower, Morrison, Murray, Nicollet, Nobles, Norman, Olmsted, Pennington, Pipestone, Polk, Ramsey, Red Lake, Redwood, Renville, Rock, Scott, Sherburne, Sibley, Stearns, Steele, Stevens, Swift, Todd, Traverse, Wabasha, Wadena, Waseca, Washington, Watonwan, Wilkin, Winona, Wright, Yellow Medicine.

Three tribal nations — the Prairie Island Community, Red Lake Band of Chippewa, and Upper Sioux Community — also are listed.

Individual taxpayers can phone Minnesota Revenue at 651-296-3781 or 1-800-652-9094 for more information.

SEP: A deadline loophole for self-employed taxpayers

Last week, we at EricJohn Ltd. suggested making contributions to traditional IRAs as a last-minute tactic to cut some income – and taxes – on a 2016 return. This year, those dollars must be deposited by April 18, so there is some urgency.

But taxpayers who are self-employed can stretch out that deadline for months if they have an SEP (or Simplified Employee Pension) plan, which is a specialized variety of IRA. They can create those extra months by requesting an extension for filing the tax return.

The Internal Revenue Service says that, unlike other types of IRAs, contributions to SEP-IRAs can be made until the due date for the return including extensions. This year, that’s October 16.

Sole proprietors and other self-employed business people with SEP-IRAs might find the longer period to be valuable. “Many clients will delay filing so they can collect from customers (sales) enough money to put a large sum into a SEP, thus significantly reducing their taxes,” says Eric Buechler, EricJohn Ltd.’s founder.

There are some technicalities affecting contributions from self-employed owners to their own SEPs. The IRS has thoughtfully put together an FAQ covering those and other SEP-related issues. Check online at https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-seps-contributions for that quick-answer sheet. For a more general explanation of SEPs, go to https://www.irs.gov/retirement-plans/choosing-a-retirement-plan-sep

But, for the personal touch, Eric is experienced in dealing with SEP-IRAs for small business clients. To pursue that strategy, now is the time to seek filing extensions.