For many business owners, there isn’t just one tax deadline they have to keep in mind. In fact, there are dates spread throughout the year that require tax forms to be remitted, making it crucial to pay close attention to which deadlines your business must follow to avoid any correspondence with the IRS.
January 31st
The new year marks more than just new year’s resolutions as payroll tax remittances are due by January 31st. Each individual you employ throughout the year will be issued Form W-2 that outlines their gross wages, taxes withheld, and benefits. This form will be used to file their individual tax return, which is why the IRS imposes a strict January 31st deadline.
All qualifying independent contractors will need to be issued a 1099-NEC for work performed at your business. Employers are only required to create a 1099-NEC if they pay the contractor over $600 throughout the year. All payments to LLCs for rent and other items will generate the need for a 1099-MISC. Both of these forms have a deadline of January 31st just like W-2s.
March 15th
Businesses set up as a multi-member LLC, partnership, or corporation will need to file the business tax return by March 15th. In order to file accurate business returns, your accounting records will need to be prepared for year-end. For more information on this, visit our other blog post here.
Business owners can request an automatic 6-month extension by filing 7004 by March 15th. Keep in mind if you pay any taxes at the corporate or state level, you will need to remit any amount you expect to be due by March 15th to avoid late payment penalties and interest.
April 15th
The next business tax deadline to be aware of is April 15th. This is the deadline for filing individual tax returns, which means Schedule C businesses will need to have the business information ready to go. Sole proprietorships and single-member LLCs are the most common types of Schedule C filers; however, rental property business owners who file Schedule E will also need to abide by this deadline.
Like the business tax returns, individual returns can be extended for 6 months to October 15th by filing Form 4868. You must still pay any taxes you expect to be due, which is why it is important to have a general idea of where your business income will fall for the year.
Quarterly Estimates
Quarterly estimated payments are also due throughout the year on April 15th, June 15th, September 15th, and January 15th. This is where you will remit payments to cover your expected tax liability. Creating a tax plan can help you gauge if you should be making quarterly payments.
Summary
Other tax deadlines pop up throughout the year, such as filing sales tax forms or requesting accounting method changes. Understanding which dates your business must abide by can be done by working with a qualified accountant who can keep you on track throughout the year.
The team at Gordian Financial can be your accounting expert not only to help you navigate tax deadlines, but to also consult you on areas of tax savings and bookkeeping best practices to promote accurate reporting. Reach out to a team member today for more information.
