Tax Calendar

Weekends & Holidays:
If a due date falls on a Saturday, Sunday or legal holiday, the due date is automatically extended until the next business day that is not itself a legal holiday.

January

3 - 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 do so before the calendar becomes too crowded.
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.
17 - Employer’s Monthly Deposit Due
If you are an employer and the monthly deposit rules apply, January 17 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for December of the prior year. This is also the due date for the nonpayroll withholding deposit for December of the prior year, 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.
17 - Farmers & Fishermen Estimated Tax Payment Due
If you are a farmer or fisherman whose gross income is two-thirds from farming or fishing, it is time to pay your estimated tax using Form 1040-ES. You have until mid-April prior year's income tax return (Form 1040). If you do not pay your estimated tax by January 17, you must file your prior-year return and pay any tax due by March 1 to avoid an estimated tax penalty.
17 - Individual Estimated Tax Payment Due
It’s time to make your fourth quarter estimated tax installment payment for the next tax year.
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 the prior year, 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*. 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. Please call this office for preparation assistance.
*This due date for the IRS’ copy is one or two months earlier than in prior years and applies when you have paid nonemployee compensation that is being reported in box 7 of the 1099-MISC.
31 - Form 1098 and Other 1099s Due to Recipients
Form 1098 (Mortgage Interest Statement) and Forms 1099, other than 1099-MISC, are also due to recipients by January 31. The IRS’ copy is not due until February 28, or March 31 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)
31 - Employers - W-2s Due to All Employees & the Government
All employers need to give copies of the W-2 form for the prior year 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. NEW DATE: 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 the past.
31 - File Form 941 and Deposit Any Undeposited Tax
File Form 941 for the fourth quarter of the prior year. 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 10 to file the return.
31 - File Form 943
All farm employers should file Form 943 to report Social Security, Medicare taxes and withheld income tax for the prior year. 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 10 to file the return.
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 the prior year.
31 - File Prior Year's Return to Avoid Penalty for Not Making 4th Quarter Estimated Payment
If you file your prior year’s 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.
31 - File Form 940 - Federal Unemployment Tax
File Form 940 (or 940-EZ) for last year. 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 10 to file the return.
31 - File Form 945
File Form 945 to report income tax withheld for 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 10 to file the return.

February

3 - 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 do so before the calendar becomes too crowded.
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.
17 - Employer’s Monthly Deposit Due
If you are an employer and the monthly deposit rules apply, January 17 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for December of the prior year. This is also the due date for the nonpayroll withholding deposit for December 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.
17 - Farmers & Fishermen Estimated Tax Payment Due
If you are a farmer or fisherman whose gross income for last year is two-thirds from farming or fishing, it is time to pay your estimated tax using Form 1040-ES. You have until April 18 to file your prior year's income tax return (Form 1040). If you do not pay your estimated tax by January 17, you must file your return and pay any tax due by March 1 to avoid an estimated tax penalty.
17 - Individual Estimated Tax Payment Due
It’s time to make your fourth quarter estimated tax installment payment for the prior tax year.
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 last year, 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*. 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. Please call this office for preparation assistance.
*This due date for the IRS’ copy is one or two months earlier than in prior years and applies when you have paid nonemployee compensation that is being reported in box 7 of the 1099-MISC.
31 - Form 1098 and Other 1099s Due to Recipients
Form 1098 (Mortgage Interest Statement) and Forms 1099, other than 1099-MISC, are also due to recipients by January 31. The IRS’ copy is not due until February 28, or March 31 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)
31 - Employers - W-2s Due to All Employees & the Government
All employers need to give copies of the W-2 form 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. NEW DATE: 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 the past.
31 - File Form 941 and Deposit Any Undeposited Tax
File Form 941 for the fourth quarter of last year. 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 10 to file the return.
31 - File Form 943
All farm employers should file Form 943 to report Social Security, Medicare taxes and withheld income tax for last year. 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 10 to file the return.
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 the prior year.
31 - File Prior Year Return to Avoid Penalty for Not Making 4th Quarter Estimated Payment
If you file your prior year’s 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.
31 - File Form 940 - Federal Unemployment Tax
File Form 940 (or 940-EZ) for last year. 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 10 to file the return.
31 - File Form 945
File Form 945 to report income tax withheld for 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 10 to file the return.

March

10 - Report Tips to Employer
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.
15 - Partnerships
File a 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.
15 - S-Corporation Election
File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S corporation beginning with the calendar year. If Form 2553 is filed late, S treatment will begin with calendar the coming year.
15 - Electing Large Partnerships
File a calendar year return (Form 1065-B) and provide each partner with a copy of Schedule K-1 (Form 1065-B), Partner’s Share of Income (Loss) From an Electing Large Partnership, or a substitute Schedule K-1. This due date applies for K-1s even if the partnership requests an extension of time to file the Form 1065-B by filing Form 7004.
15 - Time to Call For Your Tax Appointment
It is only one month until the April due date for your tax returns. If you have not made an appointment to have your taxes prepared, we encourage you 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 us.
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. We can then file the extension for you.
We look forward to hearing from you.
15 - Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in February.
15 - Non-Payroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in February.
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.
31 - Large Food and Beverage Establishment Employers
If you file Forms 8027 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

1 - Last Day to Withdraw Required Minimum Distribution
Last day to withdraw the prior year’s required minimum distribution from Traditional or SEP IRAs for taxpayers who turned 70½ that year. 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 last year were required to make their IRA withdrawal by December 31.
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.
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 for the prior year. An extension of time to file of up to 6 months may be requested. This filing requirement applies only if the aggregate value of these financial accounts exceeds $10,000 at any time during the prior year. Contact our office for additional information and assistance filing the form or requesting an extension.
18 - Individual Tax Returns Due
File last year's income tax return (Form 1040, 1040A, or 1040EZ) and pay any tax due. If you want an automatic six-month extension of time to file the return, please call this office.
Caution: The extension gives you until October 16 to file last year's 1040 return without being liable for the late filing penalty. However, it does not avoid the late payment penalty; thus, if you owe money, the late payment penalty can be severe, so you are encouraged to file as soon as possible to minimize that penalty. Also, you will owe interest, figured from the original due date until the tax is paid. If you have a refund, there is no penalty; however, you are giving the government a free loan, since they will only pay interest starting 45 days after the return is filed. Please call this office to discuss your individual situation if you are unable to file by the April 18 due date.
Note: the normal April 15 due date is a Saturday, and the following Monday is a federal holiday in the District of Columbia, so for almost all individuals their Form 1040 returns aren’t due until the next business day, which is Tuesday, April 18.
18 - Household Employer Return Due
If you paid cash wages of $2,000 or more to a household employee, you must file Schedule H. If you are required to file a federal income tax return (Form 1040), file Schedule H with the return and report any household employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of last year to household employees. Also, report any income tax that was withheld for your household employees. For more information, please call this office.
18 - Estimated Tax Payment Due (Individuals)
It’s time to make your first quarter estimated tax installment payment for the this tax year. Our tax system is a “pay-as-you-go” system. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-go” 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.
18 - Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in March.
18 - Corporations
File a calendar year income tax return (Form 1120 or 1120-A) and pay any tax due. If you need an automatic 5-month extension of time to file the return, file Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information and Other Returns, and deposit what you estimate you owe. Filing this extension protects you from late filing penalties but not late payment penalties, so it is important that you estimate your liability and deposit it using the instructions on Form 7004.
18 - Corporations
The first installment of this year's estimated tax of a calendar year corporation is due.
18 - Fiduciary Returns - Last day file calendar year fiduciary return or file an extension.
18 - Last Day to Make IRA Contributions
Last day to make contributions to Traditional and Roth IRAs for prior tax year.

May

1 - Social Security, Medicare and Withheld Income Tax
File Form 941 for the first quarter of this year. 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 10 to file the return.
Federal Unemployment Tax
Deposit the tax owed through March if it is more than $500.
10 - 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 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.
10 - Social Security, Medicare and Withheld Income Tax
File Form 941 for the first quarter of this year. This due date applies only if you deposited the tax for the quarter in full and on time.
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. This is also the due date for the non-payroll withholding deposit for April if the monthly deposit rule applies.
31 - Final Due Date for IRA Trustees to Issue Form 5498
Final due date for IRA trustees to issue Form 5498, providing IRA owners with the fair market value (FMV) of their IRA accounts as of December 31 of the prior year. The FMV of an IRA on the last day of the prior year is used to determine the required minimum distribution (RMD) that must be taken from the IRA if you are age 70½ or older during this year. If you are age 70½ or older during this year and need assistance determining your RMD for the year, please give this office a call. Otherwise, no other action is required and the Form 5498 can be filed away with your other tax documents for the year.

June

12 - 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 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.
15 - Estimated Tax Payment Due (Individuals)
It’s time to make your second quarter estimated tax installment payment for this tax year. Our tax system is a “pay-as-you-go” system. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-go” 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.
15 - Taxpayers Living Abroad
If you are 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 prior year 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 4 additional months to file. Then, file Form 1040 by October 16. 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.
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 of this year. This is also the due date for the non-payroll withholding deposit for May if the monthly deposit rule applies.
15 - Corporations
Deposit the second installment of estimated income tax for calendar year corporations.

July

1 - Time for a Mid-Year Tax Check Up
Time to review your year-to-date income and expenses to ensure estimated tax payments and withholding are adequate to avoid underpayment penalties.
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 the prior calendar year. 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.
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 is filed.
17 - Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in June.
17 - Non-Payroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in June.
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 prior calendar year.
31 - Social Security, Medicare and Withheld Income Tax
File Form 941 for the second quarter of this year. 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.
31 - Certain Small Employers
Deposit any undeposited tax if your tax liability is $2,500 or more for this year, but less than $2,500 for the second quarter.
31 - Federal Unemployment Tax
Deposit the tax owed through June if more than $500.
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 prior calendar year. 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

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.
10 - Social Security, Medicare and Withheld Income Tax
File Form 941 for the second quarter of this year. This due date applies only if you deposited the tax for the quarter in full and on time.
15 - Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in July.
15 - Non-Payroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in July.

September

1 - Fall and Next Year Tax Planning
Contact this office to schedule a consultation appointment.
11 - 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 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.
15 - Estimated Tax Payment Due - Individuals
The third installment of this year's individual estimated taxes is due. Our tax system is a “pay-as-you-go” system. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-go” 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.
15 - Corporations
File a prior 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 automatic 5-month extension.
15 - S Corporations
File a prior calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you requested an automatic 6-month extension.
15 - Corporations
Deposit the third installment of estimated income tax for this year for calendar year corporations.
15 - Partnerships
File a prior calendar year return (Form 1065). This due date applies only if you were given a 6-month extension. Provide each partner with a copy of K-1 (Form 1065) or a substitute Schedule K-1.
15 - Electing Large Partnerships
File a prior calendar year return (Form 1065-B). This due date applies only if you were given a 6-month extension. March 15 was the due date for furnishing Schedules K-1 or substitute Schedule K-1 to the partners.
15 - Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in August.
15 - Nonpayroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in August.

October

2 - Fiduciaries of Estates and Trusts
File a prior calendar year return (Form 1041). This due date applies only if you were given an extension of 5 ½ months. If applicable, provide each beneficiary with a copy of K-1 (Form 1041) or a substitute Schedule K-1.
10 - 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 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.
15 - Taxpayers with Foreign Financial Interests
If you received a 6-month extension of time to report your foreign financial accounts to the Department of the Treasury, this is the due date for Form FinCEN 114.
16 - Individuals
If you have an automatic 6-month extension to file your income tax return for prior year, file Form 1040, 1040A, or 1040EZ and pay any tax, interest, and penalties due.
16 - SEP IRA & Keogh Contributions
Last day to contribute to SEP or Keogh retirement plan for prior calendar year if tax return is on extension through October 16.
16 - Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in September.
16 - Nonpayroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in September.
31 - Social Security, Medicare and Withheld Income Tax
File Form 941 for the third quarter of this year. 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.
31 - Certain Small Employers
Deposit any undeposited tax if your tax liability is $2,500 or more for this year but less than $2,500 for the third quarter.
31 - Federal Unemployment Tax
Deposit the tax owed through September if more than $500.

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 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.
10 - Social Security, Medicare and Withheld Income Tax
File Form 941 for the third quarter of prior year. This due date applies only if you deposited the tax for the quarter in full and on time.
15 - Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in October.
15 - Nonpayroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in October.

December

1 - Time for Year-End Tax Planning
December is the month to take final actions that can affect your tax result for this year. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during this year should call for a tax planning consultation appointment.
1 - Employers
During December, ask employees whose withholding allowances will be different next year to fill out a new Form W4 or Form W4(SP).
11 - 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 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.
15 - Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in November.
15 - Nonpayroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in November.
15 - Corporations
The fourth installment of estimated tax for this year calendar year corporations is due.
31 - Last Day to Make Mandatory IRA Withdrawals
Last day to withdraw funds from a Traditional IRA Account and avoid a penalty if you turned age 70½ before this year. If the institution holding your IRA will not be open on December 31, you will need to arrange for withdrawal before that date.
31 - Last Day to Pay Deductible Expenses for this year
Last day to pay deductible expenses for the this year's return (doesn’t apply to IRA, SEP or Keogh contributions, all of which can be made after December 31). Taxpayers who are making state estimated payments may find it advantageous to prepay the January state estimated tax payment in December (Please call the office for more information).
31 - Last Day to Set Up a Keogh Account for this year
If you are self-employed, December 31 is the last day to set up a Keogh Retirement Account if you plan to make a this year's 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.
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.

Note: LPL Financial and its representatives do not provide tax advice.