Axley & Rode, LLP

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January 15 Pay the final installment of 2020 estimated tax. Farmers and fishermen: Pay estimated tax for 2020. February 1 (The usual deadline of January 31 is a Sunday) File 2020 Forms W-2, “Wage and Tax Statement,” with the Social Security Administration and provide copies to your employees. Provide copies of 2020 Forms 1099-MISC, “Miscellaneous Income,” to recipients of income from your business where required. File 2020 Forms 1099-MISC reporting nonemployee compensation payments in Box 7 with the IRS. File Form 940, “Employer’s Annual Federal Unemployment (FUTA) Tax Return,” for 2020. If your undeposited tax is $500 or less, you can eithe...

If you’re self-employed and don’t have withholding from paychecks, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The fourth 2020 estimated tax payment deadline for individuals is Friday, January 15, 2021. Even if you do have some withholding from paychecks or payments you receive, you may still have to make estimated payments if you receive other types of income such as Social Security, prizes, rent, interest, and dividends. Pay-as-you-go system You must make sufficient federal income tax payments long before the April filing deadline through withholding, estimated tax payments, or a combination of the two. If you fail to make the required payments, you may be subject to an underpayment penalty, as well as interest. In general, you must make estimated tax payments for 2020 if both of these statements apply: You expect to owe at least $1,000 in tax after subtracting tax withholding and credits, and You expect withholding ...

Did you ask for an extension for your 2019 tax return this year? If so, keep in mind that Oct. 15, 2020 is the last day to file for most people who requested an extension. You can file your return any time before that date if you have all your required tax documents. Contact us for assistance. October isn’t that far away.

Reminder: The extended deadline for paying estimated taxes is about a month away. If you pay estimated taxes, be aware that the first and second quarter payments for tax year 2020, which were originally due April 15 and June 15, are now due July 15. Individuals and corporations that make quarterly estimated tax payments have until July 15 to make their payment without penalty. The deadlines were extended as a response to the COVID-19 pandemic.

You probably know by now that, due to the coronavirus (COVID-19) pandemic, the IRS has announced that taxpayers have until July 15 to file their 2019 federal tax returns (rather than April 15) and to make payments that would otherwise be due on April 15. But to qualify for that relief, do you have to be directly affected by COVID-19? The answer is no. Specifically, the IRS says “you do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief.” You only need to have a tax return or payment due on April 15. Keep in mind, this relief doesn’t apply to federal income tax returns and payments due on any other date. Here’s more: https://bit.ly/2WJx0Sj

Does your health insurance plan include a tax-smart health savings account (HSA) or perhaps an Archer Medical Savings Account (MSA)? If so, you may be aware that for prior years, you could continue making tax deductible contributions to your account up to the date you file your return or April 15, whichever is later. Due to the coronavirus (COVID-19) outbreak, the filing and tax paying deadline for 2019 federal tax returns has been moved to July 15. That means you now also have until July 15 to contribute to your HSA or MSA. For more information contact us, or see question 21 on this list of frequently asked questions from the IRS:  https://bit.ly/2WJx0Sj

Taxpayers now have an extension of time to make certain tax payments, regardless of the amount, the IRS announced March 21. The federal income tax filing due date has automatically been extended for 3 months due to the coronavirus (COVID-19) pandemic. Taxpayers can defer federal income tax payments and estimated tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. The extension to pay was originally announced with certain limits but the IRS has eliminated the limits. (Notice 2020-18)

The IRS issued guidance on the extension for federal tax payments due April 15. In Notice 2020-17, the IRS has provided details about the previously announced tax payment extension relief for taxpayers with federal income tax payments. For affected taxpayers, the due date for making federal income tax payments usually due April 15, 2020, is postponed to July 15, 2020. The applicable postponed payment amount is up to $10 million for corporations and $1 million for other taxpayers. The payment postponement of up to $1 million applies to estimated tax payments and income tax payments due on April 15 from trusts and estates.  Important: At this time, the guidance doesn’t provide any filing date extensions.

Taxpayers have more time to  pay   their 2019 tax liability. U.S. Treasury Sec. Steven Mnuchin announced that, in the wake of the coronavirus (COVID-19), the April 15 deadline to  pay   federal taxes is extended 90 days. Individuals who owe tax payments to the IRS can defer up to $1 million within the 90-day window, without penalties or interest. Corporations can defer up to $10 million of tax payments for 90 days.  The tax deadline to  file  tax returns remains April 15.    Mnuchin encouraged Americans who don’t owe to file by April 15 so they receive their refunds. Those who planned to request the automatic six-month extension to file may still do so. We’ll provide more details as they become available. Contact us with questions about your situation.

To avoid interest and penalties, you must make sufficient federal income tax payments long before your April filing deadline through withholding, estimated tax payments, or a combination of the two. The third 2018 estimated tax payment deadline for individuals is September 17. If you don’t have an employer withholding tax from your pay, you likely need to make estimated tax payments. But even if you do have withholding, you might need to pay estimated tax. It can be necessary if you have more than a nominal amount of income from sources such as self-employment, interest, dividends, alimony, rent, prizes, awards or the sales of assets. A two-prong test Generally, you must pay estimated tax for 2018 if both of these statements apply: 1. You expect to owe at least $1,000 in tax after subtracting tax withholding and credits, and 2. You expect withholding and credits to be less than the smaller of 90% of your tax for 2018 or 100% of the tax on your 2017 return — 110% if your 2017 adjusted g...

The federal income tax filing deadline is slightly later than usual this year — April 17 — but it’s now nearly upon us. So, if you haven’t filed your individual return yet, you may be thinking about an extension. Or you may just be concerned about meeting the deadline in the eyes of the IRS. Whatever you do, don’t get tripped up by one of these potential pitfalls. Filing for an extension Filing for an extension allows you to delay filing your return until the applicable extension deadline, which for 2017 individual tax returns is October 15, 2018. While filing for an extension can provide relief from April 17 deadline stress and avoid failure-to-file penalties, there are some possible pitfalls:  If you expect to owe tax, to avoid potential interest and penalties you still must (with a few exceptions) pay any tax due by April 17. If you expect a refund, remember that you’re simply extending the amount of time your money is in the government’s pockets rather than your own. (If you’re...