January 2022 Individual Due Dates

January 2 – Time to Call For Your Tax Appointment –

January is the beginning of tax season. If you have not made an appointment to have your taxes prepared, we encourage you to do so before the calendar becomes too crowded.

January 10 – Report Tips to Employer –

If you are an employee who works for tips and received more than $20 in tips during December, you are required to report them to your employer on IRS Form 4070 no later than January 10.

January 15 – Individual Estimated Tax Payment Due –

It’s time to make your fourth quarter estimated tax installment payment for the 2019 tax year.

January 2022 Business Due Dates

January 15 – Employer’s Monthly Deposit Due –

If you are an employer and the monthly deposit rules apply, January 15 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for December 2019. This is also the due date for the nonpayroll withholding deposit for December 2019 if the monthly deposit rule applies. Employment tax deposits must be made electronically (no paper coupons), except employers with a deposit liability under $2,500 for a return period may remit payments quarterly or annually with the return.

January 31 – 1099-MISCs Due To Service Providers & the IRS –

If you are a business or rental property owner and paid $600 or more to individuals (other than employees) as nonemployee compensation during 2019, you are required to provide Form 1099 to those workers by January 31. “Nonemployee compensation” can mean payments for services performed for your business or rental by an individual who is not your employee, commissions, professional fees and materials, prizes and awards for services provided, fish purchases for cash, and payments for an oil and gas working interest. In order to avoid a penalty, copies of the 1099s also need to be sent to the IRS by January 31, 2019 *. The 1099s must be submitted on optically scannable (OCR) forms. This firm prepares 1099s in OCR format for submission to the IRS with the 1096 submittal form. This service provides both recipient and file copies for your records. A business or individual who is required to file 250 or more information returns (i.e., 1099s among others) must file those forms electronically. Please call this office for preparation assistance.

*This due date for the IRS’ copy is one or two months earlier than in years prior to 2017 and applies when you have paid nonemployee compensation that is being reported in box 7 of the 1099-MISC.

January 31 – Form 1098 and Other 1099s Due to Recipients –

Form 1098 (Mortgage Interest Statement) and Forms 1099, other than 1099-MISC when box 7 is used, are also due to recipients by January 31. The IRS’ copy is not due until February 28, 2019, or April 1, 2019 if electronically filed. These 1099s may be reporting the following types of income:

• Dividends and other corporate distributions
• Interest
• Amounts paid in real estate transactions
• Rent
• Royalties
• Amounts paid in broker and barter exchange transactions
• Payments to attorneys
• Payments of Indian gaming profits to tribal members
• Profit-sharing distributions
• Retirement plan distributions
• Original issue discount
• Prizes and awards
• Medical and health care payments
• Debt cancellation (treated as payment to debtor)

January 31 – Employers – W-2s Due to All Employees & the Government –

EMPLOYEE’S COPY: All employers need to give copies of the W-2 form for 2019 to their employees. If an employee agreed to receive their W-2 form electronically, post it on a website and notify the employee of the posting. GOVERNMENT’S COPY: W-2 Copy A and Transmittal Form W-3, whether filed electronically or by paper, are due January 31 to the Social Security Administration. This is a month earlier than in years before 2017.

January 31 – File Form 941 and Deposit Any Undeposited Tax –

File Form 941 for the fourth quarter of 2019. Deposit any undeposited Social Security, Medicare and withheld income tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until February 11 to file the return.

January 31 – File Form 943 –

All farm employers should file Form 943 to report Social Security, Medicare taxes and withheld income tax for 2018. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 11 to file the return.

January 31 – W-2G Due from Payers of Gambling Winnings –

If you paid either reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of the W-2G form for 2019.

January 31 – File 2019 Return to Avoid Penalty for Not Making 4th Quarter Estimated Payment –

If you file your prior year’s individual income tax return and pay any tax due by this date, you need not make the 4th Quarter Estimated Tax Payment that was otherwise due earlier in January.

January 31 – File Form 940 – Federal Unemployment Tax –

File Form 940 (or 940-EZ) for 2019. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you deposited the tax for the year in full and on time, you have until February 11 to file the return.

January 31 – File Form 945 –

File Form 945 to report income tax withheld for 2019 on all non-payroll items, including back-up withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 11 to file the return.

February 2022 Individual Due Dates

February 1 – Tax Appointment

If you don’t already have an appointment scheduled with this office, you should call to make an appointment that is convenient for you.

February 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during January, you are required to report them to your employer on IRS Form 4070 no later than February 10.

Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

February 18 – Last Date to Claim Exemption from Withholding

If you claimed an exemption from income tax withholding last year on the Form W-4 you gave your employer, you must file a new Form W-4 by this date to continue your exemption for another year.

February 2022 Business Due Dates

February 10 – Non-Payroll Taxes

File Form 945 to report income tax withheld for 2019 on all non-payroll items. This due date applies only if you deposited the tax for the year in full and on time.

February 10 – Social Security, Medicare and Withheld Income Tax

File Form 941 for the fourth quarter of 2019. This due date applies only if you deposited the tax for the quarter in full and on time.

February 10 – Certain Small Employers

File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2019. This due date applies only if you deposited the tax for the year in full and on time.

February 10 – Farm Employers

File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2019. This due date applies only if you deposited the tax for the year timely, properly, and in full.

February 10 – Federal Unemployment Tax

File Form 940 for 2019. This due date applies only if you deposited the tax for the year in full and on time.

February 18 – Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in January.

February 18 – Non-Payroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in January.

February 19 –  Payroll Withholding 

Employers begin withholding for employees who claimed exemption for withholding in 2019 but have not provided a W-4 (or W-4(SP)) to continue the exemption for 2020.

February 28 – Payers of Gambling Winnings

File Form 1096, Annual Summary and Transmittal of U.S. Information Returns, along with Copy A of all the Forms W-2G you issued for 2019. If you file Forms W-2G electronically, your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms was January 31.

February 28 – Informational Returns Filing Due

File government copies of information returns (Form 1099) and transmittal Forms 1096 for certain payments you made during 2019, other than the 1099-MISCs that were due January 31. There are different 1099 forms for different types of payments.

February 28 –  Applicable Large Employers (ALE) – Form 1095-C

If you’re an Applicable Large Employer, file 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and 1095-C with the IRS. For all other providers of minimum essential coverage, file paper Forms 1094-B, Transmittal  of Health  Coverage Information Returns, and 1095-B with the IRS. If you’re filing any of these forms with the IRS electronically, your due date for filing them will be extended to March 31. See the Instructions for Forms 1094-B and 1095-B and the Instructions for Forms 1094-C and 1095-C for more information about the information reporting requirements.

March 2022 Individual Due Dates

If you are an employee who works for tips and received more than $20 in tips during February, you are required to report them to your employer on IRS Form 4070 no later than March 10.

Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

March 16 – Time to Call for Your Tax Appointment

It is only one month until the April due date for your individual income tax returns. If you have not made an appointment to have your taxes prepared, I encourage you to do so before it becomes too late.

Do not be concerned about having all your information available before making the appointment. If you do not have all your information, we will simply make a list of the missing items. When you receive those items, just forward them to me.

Even if you think you might need to go on extension, it is best to prepare a preliminary return and estimate the result so you can pay the tax and minimize interest and penalties. I can then file the extension for you.

March 2022 Business Due Dates

March 2 – Farmers and Fishermen

File your 2019 income tax return (Form 1040 or 1040-SR) and pay any tax due. However, you have until April 15 to file if you paid your 2019 estimated tax by January 15, 2020.

March 2 – Large Food and Beverage Establishment Employers

File Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically, your due date for filing them with the IRS will be extended to March 31.

March 2 – Applicable Large Employers (ALE) & Self-Insuring Employers

Provide employees with annual information statement of health insurance coverage, Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. This date reflects an automatic 30-day extension from the statutory due date of January 31 provided by the IRS (Notice 2019-63). This extended due date also applies to insurers who are required to provide Form 1095-B, Health Coverage, to individuals. The government’s copies of these forms were due February 28 (or March 31 if filed electronically).

March 16 – Partnerships

File a 2019 calendar year return (Form 1065). Provide each partner with a copy of Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return and provide Schedules K-1 or substitute Schedules K-1 to the partners, file Form 7004. Then, file Form 1065 and provide the K-1s to the partners by September 15.

March 16 – S-Corporations

File a 2019 calendar year income tax return (Form 1120-S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120-S), Shareholder’s Share of Income, Deductions, Credits, etc., or a substitute Schedule K-1 (Form 1120-S). To request an automatic 6-month extension of time to file the return, file Form 7004 and pay the tax estimated to be owed. Then file the return; pay any tax, interest, and penalties due; and provide each shareholder with a copy of their Schedule K-1 (Form 1120-S) by September 15.

March 16 – S-Corporation Election

File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S corporation beginning with calendar year 2020. If Form 2553 is filed late, S treatment will begin with calendar year 2021.

March 16 – Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in February.

March 16 – Non-Payroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in February.

March 31 – Electronic Filing of Forms 1098, 1099 and W-2G

If you file Forms 1098, 1099 (other than 1099-MISC with an amount in box 7), or W-2G electronically with the IRS, this is the final due date. This due date applies only if you file electronically (not paper forms). Otherwise, January 31 or February 28 was the due date, depending on the form filed. The due date for giving the recipient these forms was January 31.

March 31 – Applicable Large Employers (ALE) – Form 1095-C

If filing electronically, file Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, with the IRS. If filing on paper the due date was February 28, 2020.

March 31 – Large Food and Beverage Establishment Employers

If you file Forms 8027 for 2019 electronically with the IRS, this is the final due date. This due date applies only if you file electronically. Otherwise, February 28 was the due date.

April 2022 Individual Due Dates

April 1 – Last Day to Withdraw Required Minimum Distribution

Last day to withdraw 2019’s required minimum distribution from Traditional or SEP IRAs for taxpayers who turned 70½ in 2019. Failing to make a timely withdrawal may result in a penalty equal to 50% of the amount that should have been withdrawn. Taxpayers who became 70½ before 2019 were required to make their 2019 IRA withdrawal by December 31, 2019.

April 10 –  Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during March, you are required to report them to your employer on IRS Form 4070 no later than April 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

April 15 – Taxpayers with Foreign Financial Interests

A U.S. citizen or resident, or a person doing business in the United States, who has a financial interest in or signature or other authority over any foreign financial accounts (bank, securities or other types of financial accounts), in a foreign country, is required to file Form FinCEN 114. The form must be filed electronically; paper forms are not allowed. The form must be filed with the Treasury Department (not the IRS) no later than April 15, 2020 for 2019. An extension of time to file of up to 6 months is automatically allowed. This filing requirement applies only if the aggregate value of these financial accounts exceeds $10,000 at any time during 2019. Contact our office for additional information and assistance filing the form.

April 15 – The Normal April 15 Tax Filing Due Date has been Extended to July 15, 2020 due to the COVID-19 Outbreak.

This includes the following:

• Individual 2019 tax returns, 1040 and 1040-SR, and associated tax payments
• April installment of 2020 estimated tax payments
• Household employer Schedule H
• Calendar year 2019 C corporation income tax returns, and associated tax payments
• Calendar year 2020 C corporation estimated tax payments
• 2019 fiduciary returns
• IRA contributions for 2019 would normally be due April 15, 2020. However, the due date has been extended July 15, 2020.  This also applies to HSA and Archer MSA contributions.

April 2022 Business Due Dates

April 15 – The Normal April 15 Tax Filing Due Date has been Extended to July 15, 2020 due to the COVID-19 Outbreak

This includes the following:

• Individual 2019 tax returns, 1040 and 1040-SR, and associated tax payments
• April installment of 2020 estimated tax payments
• Household Employer Schedule H
• Calendar year 2019 C corporation income tax returns, and associated tax payments
• Calendar year 2020 C corporation estimated tax payments
• 2019 Fiduciary Returns
• IRA contributions for 2019 would normally be due April 15, 2020. However, the due date has been extended July 15, 2020.  This also applies to HSA and Archer MSA contributions. At this time, it is not.

April 15 – Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in March.

April 15 – Non-Payroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in March.

April 30 – Social Security, Medicare and Withheld Income Tax

File Form 941 for the first quarter of 2020. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until May 11 to file the return.

April 30 – Federal Unemployment Tax

Deposit the tax owed through March if it is more than $500

May 2022 Individual Due Dates

May 11 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during April, you are required to report them to your employer on IRS Form 4070 no later than May 11. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

May 2022 Business Due Dates

May 15 –  Employer’s Monthly Deposit Due

If you are an employer and the monthly deposit rules apply, May 15 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for April 2020. This is also the due date for the non-payroll withholding deposit for April 2020 if the monthly deposit rule applies. See note below.

Note: Under the Cares Act, employers…

• Are able to defer paying the employer’s 6.2% portion of the Social Security taxes through the end of 2020. The delay provisions apply to all employers regardless of the number of the employer’s employees.
• Are able to retain enough of the federal income tax withholding of each employee who received mandatory COVID-19 sick and family leave payments and both the employer’s and employee’s share of social security tax deposits, as well as the employer’s share of Social Security and Medicare taxes with respect to all employees, to reimburse themselves for mandatory COVID-19 sick and family leave payments.

Are able to retain the employer’s 6.2% portion of the Social Security taxes (and equivalent RR retirement

June 2022 Individual Due Dates

June 1 – NOTE – This normally is the date for IRA Trustees to issue Form 5498.

However, on May 28, 2020 just 4 days before the due date, the IRS issued Notice 2020-35 postponing the due date for the Form 5498 series until August 31, 2020.

June 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during May, you are required to report them to your employer on IRS Form 4070 no later than June 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

June 15 – Estimated Tax Payment Due

Normally the June estimated tax payment is due June 15. However, due to the COVID-19 emergency this due date has been extended to July 15.

June 15 – Taxpayers Living Abroad

Normally, for a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, June 15 is the filing due date for your 2019 income tax return and to pay any tax due. However, due to the COVID-19 emergency this due date has been extended to July 15.

June 2022 Business Due Dates

June 15 – Employer’s Monthly Deposit Due

If you are an employer and the monthly deposit rules apply, June 15 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for May 2020. This is also the due date for the non-payroll withholding deposit for May 2020 if the monthly deposit rule applies.  However, you may be able to retain a portion of the deposit to fund the mandatory paid sick leave and family leave under the Families First Coronavirus Response Act or defer portions to 2021 and 2022 under the CARES Act.

June 15 – Corporations

June 15 is normally the date to deposit the second installment of estimated income tax for 2020 for calendar year corporations. However, due to the COVID-19 emergency this due date has been extended to July 15.

July 2022 Individual Due Dates

July 1 – Time for a Mid-Year Tax Check Up

Time to review your 2020 year-to-date income and expenses to ensure estimated tax payments and withholding are adequate to avoid underpayment penalties or to determine if the estimated payments and/or withholding can be reduced because your income has declined as a result of the COVID-19 emergency.

July 1 – Time to Call for Your Tax Appointment if You Haven’t Yet Filed Your 2019 Return

It is only 2 weeks until the July 15 due date for your 2019 individual income tax return that normally would have been due in April, but because of the COVID-19 emergency, was automatically extended by the IRS. If you have not made an appointment to have your taxes prepared, we encourage you to do so before it becomes too late. If you have already had your appointment but still have not gotten all of your tax information to this office, please contact us so that a 3-month extension can be prepared for you. If you will owe tax, payment needs to be made with the extension request.

July 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during June, you are required to report them to your employer on IRS Form 4070 no later than July 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year it is filed.

July 15 – IRA Contributions for 2019

This is the last day to make IRA contributions for tax year 2019.

July 15 – Individuals

If you took advantage of the 3-month COVID-19 automatic extension provided by the IRS to file your income tax return for 2019, file Form 1040 or 1040-SR, or request an additional 3-month extension using Form 4868, and pay any tax due.

July 15 – Taxpayers Living Abroad

Normally, for a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, the filing due date for your 2019 income tax return and to pay any tax due would have been June 15. However, due to the COVID-19 emergency this due date was extended to July 15.

If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, July 15 is the filing due date for your 2019 income tax return and to pay any tax due. If your return has not been completed and you need additional time to file your return, file Form 4868 to obtain 3 additional months to file. Then, file Form 1040 or 1040-SR by October 15. However, if you are a participant in a combat zone, you may be able to further extend the filing deadline (see below).

Caution: This is not an extension of time to pay your tax liability, only an extension to file the return. If you expect to owe, estimate how much and include your payment with the extension. If you owe taxes when you do file your extended tax return, you will be liable for both the late payment penalty and interest from the due date.

Combat Zone– For military taxpayers in a combat zone/qualified hazardous duty area, the deadlines for taking actions with the IRS are extended. This also applies to service members involved in contingency operations, such as Operation Iraqi Freedom or Enduring Freedom. The extension is for 180 consecutive days after the later of:

• The last day a military taxpayer was in a combat zone/qualified hazardous duty area or served in a qualifying contingency operation, or have qualifying service outside of the combat zone/qualified hazardous duty area (or the last day the area qualifies as a combat zone or qualified hazardous duty area), or
• The last day of any continuous qualified hospitalization for injury from service in the combat zone/qualified hazardous duty area or contingency operation, or while performing qualifying service outside of the combat zone/qualified hazardous duty area.

In addition to the 180 days, the deadline is also extended by the number of days that were left for the individual to take an action with the IRS when they entered a combat zone/qualified hazardous duty area or began serving in a contingency operation.

It is not a good idea to delay filing your return because you owe taxes. The late filing penalty is 5% per month (maximum 25%) and can be a substantial penalty. It is generally better practice to file the return without payment and avoid the late filing penalty. We can also establish an installment agreement, which allows you to pay your taxes over a period of up to 72 months.

Please contact this office for assistance with an extension request or an installment agreement.

July 15 – Estimated Tax Payments – Individuals

The first and second installments of 2020 individual estimated taxes (Form 1040-ES) are due. Normally, these payments would have been due April 15 and June 15, respectively, but because of the COVID-19 emergency, the IRS extended the due dates to July 15.

Our tax system is a “pay-as-you-earn” system. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-earn” requirement. These include:

• Payroll withholding for employees;
• Pension withholding for retirees; and
• Estimated tax payments for self-employed individuals and those with other sources of income not covered by withholding.

When a taxpayer fails to prepay a safe harbor (minimum) amount, they can be subject to the underpayment penalty. This penalty is equal to the federal short-term rate plus 3 percentage points, and the penalty is computed on a quarter-by-quarter basis.

Federal tax law does provide ways to avoid the underpayment penalty. If the underpayment is less than $1,000 (the de minimis amount), no penalty is assessed. In addition, the law provides “safe harbor” prepayments. There are two safe harbors:

• The first safe harbor is based on the tax owed in the current year. If your payments equal or exceed 90% of what is owed in the current year, you can escape a penalty.
• The second safe harbor is based on the tax owed in the immediately preceding tax year. This safe harbor is generally 100% of the prior year’s tax liability. However, for taxpayers whose AGI exceeds $150,000 ($75,000 for married taxpayers filing separately), the prior year’s safe harbor is 110%.

Example: Suppose your tax for the year is $10,000 and your prepayments total $5,600. The result is that you owe an additional $4,400 on your tax return. To find out if you owe a penalty, see if you meet the first safe harbor exception. Since 90% of $10,000 is $9,000, your prepayments fell short of the mark. You can’t avoid the penalty under this exception.

However, in the above example, the safe harbor may still apply. Assume your prior year’s tax was $5,000. Since you prepaid $5,600, which is greater than 110% of the prior year’s tax (110% = $5,500), you qualify for this safe harbor and can escape the penalty.

This example underscores the importance of making sure your prepayments are adequate, especially if you have a large increase in income. This is common when there is a large gain from the sale of stocks, sale of property, when large bonuses are paid, when a taxpayer retires, etc. Timely payment of each required estimated tax installment is also a requirement to meet the safe harbor exception to the penalty. If you have questions regarding your safe harbor estimates, please call this office as soon as possible.

CAUTION: Some state de minimis amounts and safe harbor estimate rules are different than those for the Federal estimates. Please call this office for particular state safe harbor rules.

July 2022 Business Due Dates

July 1 – Self-Employed Individuals with Pension Plans

If you have a pension or profit-sharing plan, you may need to file a Form 5500 or 5500-EZ for calendar year 2019. Even though the forms do not need to be filed until July 31, you should contact this office now to see if you have a filing requirement, and if you do, allow time to prepare the return.

July 15 – Corporations

If you took advantage of the 3-month COVID-19 automatic extension provided by the IRS to file your corporate income tax returns due on July 15, 2020, file Form 1120 or 1120S, or request an additional 3-month extension using Form 7004, and pay any tax due.  CAUTION: The extension did not apply to calendar year S-Corporation returns that were due on March 16, 2020.

July 15 – Fiduciaries

If you took advantage of the 3-month COVID-19 automatic extension provided by the IRS to file your trust or estate income tax return for 2019, file Form 1041, or request an additional 2-1/2-month extension using Form 7004, and pay any tax due.

July 15 – Estimated Tax – Corporations

Corporate 2020 estimated tax payments that would normally have been due between April 1, 2020 and July 14, 2020 are payable on July 15, 2020.

July 15 – Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in June 2020. However, you may be able to retain a portion of the deposit to fund the mandatory paid sick leave and family leave under the Families First Coronavirus Response Act or defer portions to 2021 and 2022 under the CARES Act.

July 15 – Non-Payroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in June.

July 31 –  Self-Employed Individuals with Pension Plans

If you have a pension or profit-sharing plan, this is the final due date for filing Form 5500 or 5500-EZ for calendar year 2019.

July 31 – Social Security, Medicare and Withheld Income Tax

File Form 941 for the second quarter of 2020. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until August 10 to file the return. See note below.

Note: Under the Cares Act, employers…

• Are able to defer paying the employer’s 6.2% portion of the Social Security taxes through the end of 2020. The delay provisions apply to all employers regardless of the number of the employer’s employees.
• Are able to retain enough of the federal income tax withholding of each employee who received mandatory COVID-19 sick and family leave payments and both the employer’s and employee’s share of social security tax deposits, as well as the employer’s share of Social Security and Medicare taxes with respect to all employees, to reimburse themselves for mandatory COVID-19 sick and family leave payments.
• Are able to retain the employer’s 6.2% portion of the Social Security taxes (and equivalent RR retirement amounts) to reimburse themselves for keeping employees on payroll under the Employee Retention Credit.

July 31 – Certain Small Employers

Deposit any undeposited tax if your tax liability is $2,500 or more for 2020 but less than $2,500 for the second quarter.

July 31 – Federal Unemployment Tax

Deposit the tax owed through June if more than $500.

July 31 – All Employers

If you maintain an employee benefit plan, such as a pension, profit-sharing, or stock bonus plan, file Form 5500 or 5500-EZ for calendar year 2019. If you use a fiscal year as your plan year, file the form by the last day of the seventh month after the plan year ends.

August 2022 Individual Due Dates

August 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during July, you are required to report them to your employer on IRS Form 4070 no later than August 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

August 2022 Business Due Dates

August 10 – Social Security, Medicare and Withheld Income Tax

File Form 941 for the second quarter of 2020. This due date applies only if you deposited the tax for the quarter in full and on time.

August 17 – Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in July.

August 17 – Non-Payroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in July.

September 2022 Individual Due Dates

September 1 – 2020 Fall and 2021

Tax Planning Contact this office to schedule a consultation appointment.

September 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during August, you are required to report them to your employer on IRS Form 4070 no later than September 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

September 15 – Estimated Tax Payment Due

The third installment of 2020 individual estimated taxes is due. Our tax system is a “pay-as-you-earn” system. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-earn” requirement. These include:

• Payroll withholding for employees;
• Pension withholding for retirees; and
• Estimated tax payments for self-employed individuals and those with other sources of income not covered by withholding.

When a taxpayer fails to prepay a safe harbor (minimum) amount, they can be subject to the underpayment penalty. This penalty is equal to the federal short-term rate plus 3 percentage points, and the penalty is computed on a quarter-by-quarter basis.

Federal tax law does provide ways to avoid the underpayment penalty. If the underpayment is less than $1,000 (the de minimis amount), no penalty is assessed. In addition, the law provides “safe harbor” prepayments. There are two safe harbors:

• The first safe harbor is based on the tax owed in the current year. If your payments equal or exceed 90% of what is owed in the current year, you can escape a penalty.
• The second safe harbor is based on the tax owed in the immediately preceding tax year. This safe harbor is generally 100% of the prior year’s tax liability. However, for taxpayers whose AGI exceeds $150,000 ($75,000 for married taxpayers filing separately), the prior year’s safe harbor is 110%.

Example: Suppose your tax for the year is $10,000 and your prepayments total $5,600. The result is that you owe an additional $4,400 on your tax return. To find out if you owe a penalty, see if you meet the first safe harbor exception. Since 90% of $10,000 is $9,000, your prepayments fell short of the mark. You can’t avoid the penalty under this exception.

However, in the above example, the safe harbor may still apply. Assume your prior year’s tax was $5,000. Since you prepaid $5,600, which is greater than 110% of the prior year’s tax (110% = $5,500), you qualify for this safe harbor and can escape the penalty.

This example underscores the importance of making sure your prepayments are adequate, especially if you have a large increase in income. This is common when there is a large gain from the sale of stocks, sale of property, when large bonuses are paid, when a taxpayer retires, etc. Timely payment of each required estimated tax installment is also a requirement to meet the safe harbor exception to the penalty. If you have questions regarding your safe harbor estimates, please call this office as soon as possible.

CAUTION: Some state de minimis amounts and safe harbor estimate rules are different than those for the Federal estimates. Please call this office for particular state safe harbor rules.

September 2022 Business Due Dates

September 15 – S Corporations

File a 2019 calendar year income tax return (Form 1120-S) and pay any tax due. This due date applies only if you requested an automatic 6-month extension. Provide each shareholder with a copy of K-1 (Form 1120-S) or a substitute Schedule K-1.

September 15 – Corporations 

Deposit the third installment of estimated income tax for 2020 for calendar year

September 15 –  Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in August.

September 15 – Nonpayroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in August.

September 15 – Partnerships

File a 2019 calendar year return (Form 1065). This due date applies only if you were given an additional 5-month extension. Provide each partner with a copy of K-1 (Form 1065) or a substitute Schedule K-1.

September 30 – Fiduciaries of Estates and Trusts

File a 2019 calendar year return (Form 1041). This due date applies only if you were given an extension of 5 1/2 months. If applicable, provide each beneficiary with a copy of K-1 (Form 1041) or a substitute Schedule K-1.

October 2022 Individual Due Dates

October 13 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 13. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

October 15 – Taxpayers with Foreign Financial Interests

If you received an automatic 6-month extension of time to report your 2019 foreign financial accounts to the Department of the Treasury, this is the due date for Form FinCEN 114.

October 15 – Individuals

If you requested an automatic extension by July 15 to file your income tax return for 2019, file Form 1040 and pay any tax, interest, and penalties due.

October 15 –  SEP IRA & Keogh Contributions
Last day to contribute to a SEP or Keogh retirement plan for calendar year 2019 if tax return is on extension through October 15. 15 Social Security, Medicare and Withheld Income Tax If the monthly deposit rule applies, deposit the tax for payments in September.

October 2022 Business Due Dates

October 15 – Corporations

File a 2019 calendar year income tax return (Form 1120 or 1120-A) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an additional 3-month extension by July 15th.

October 15 – Taxpayers with Foreign Financial Interests 

If you received an automatic 6-month extension of time to report your 2019 foreign financial accounts to the Department of the Treasury, this is the due date for Form FinCEN 114.

October 15 – Social Security, Medicare and withheld income tax

If the monthly deposit rule applies, deposit the tax for payments in September.

October 15 – Nonpayroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in September.

November 2022 Individual Due Dates

November 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during October, you are required to report them to your employer on IRS Form 4070 no later than November 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed

November 2022 Business Due Dates

November 2 – Social Security, Medicare and Withheld Income Tax

File Form 941 for the third quarter of 2020. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until November 10 to file the return.

November 2 – Certain Small Employers

Deposit any undeposited tax if your tax liability is $2,500 or more for 2020 but less than $2,500 for the third quarter.

November 2 – Federal Unemployment Tax

Deposit the tax owed through September if more than $500.

November 10 – Social Security, Medicare and Withheld Income Tax

File Form 941 for the third quarter of 2020. This due date applies only if you deposited the tax for the quarter in full and on time.

November 16 – Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in October.

November 16 – Nonpayroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in October.

December 2022 Individual Due Dates

December 1 – Time for Year-End Tax Planning

December is the month to take final actions that can affect your tax result for 2020. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2020 should call for a tax planning consultation appointment.

December 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during November, you are required to report them to your employer on IRS Form 4070 no later than December 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

December 31 – Last Day to Pay Deductible Expenses for 2020

Last day to pay deductible expenses for the 2020 return (doesn’t apply to IRA, SEP or Keogh contributions, all of which can be made after December 31, 2020).

December 31 –  Caution! Last Day of the Year

If the actions you wish to take cannot be completed on the 31st or a single day, you should consider taking action earlier than December 31st.

December 2022 Business Due Dates

December 1 – Employers

During December, ask employees whose withholding allowances will be different in 2021 to fill out a new Form W4 or Form W4(SP).

December 15 – Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in November.

December 15 – Nonpayroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in November.

December 15 – Corporations

The fourth installment of estimated tax for 2020 calendar year corporations is due.

December 31 – Last Day to Set Up a Keogh Account for 2020

If you are self-employed, December 31 is the last day to set up a Keogh Retirement Account if you plan to make a 2020 Contribution. If the institution where you plan to set up the account will not be open for business on the 31st, you will need to establish the plan before the 31st. Note: there are other options such as SEP plans that can be set up after the close of the year. Please call the office to discuss your options.

December 31 – Caution! Last Day of the Year

If the actions you wish to take cannot be completed on the 31st or a single day, you should consider taking action earlier than December 31st.