Following your dreams used to mean perfecting your craft or practicing your elevator pitch to perfection.
However, you are a small business owner now so following your dreams has gotten a bit more complicated.
Suddenly you are looking up legal permits, researching payroll software, and trying to comprehend the overwhelming tax code.
Like many small businesses, it started with a dream but the day-to-day tasks of running a business began to take over your schedule.
What are the need-to-know details? Two words, Tax Deadlines
It used to be you only had to worry about April 15th, but now with a business of your own, there is a surprising number of dates that can be important to you.
Read through our list and consider which dates may be applicable to your situation.
Be sure to check out the deadlines!
2nd quarter estimated tax payments are due for both businesses and personal taxes.
3rd quarter estimated tax payments are due for businesses and personal taxes.
Extensions for S corp (Form 1102S) and partnerships (Form 1065) are due.
Extensions for corporate (Form 1120) and personal tax returns are due.
For businesses, the 4th quarter estimated tax payments are due.
For Individuals, the 4th quarter estimated tax payments are due for 2019.
W-2’s must be sent to both your employees and IRS for work performed in 2019.
1099s must be sent to independent contractors for work performed in 2019.
S Corp (Form 1102S) and partnership (Form 1065) returns are due. You can file an extension to be due on September 16, 2020, but the tax liability is not extended.
Businesses file 1099’s information returns for the 2019 tax year electronically if they were not already mailed in on February 28, 2020.
Corporate (Form 1120) tax returns are due. 2020 1st quarter estimated tax liability is also due on this date.
Individual returns and tax liability is due by this date. An extension to October 15th is allowed but the tax liability is still due. In order to complete the extension, Form 4868 is required.
You have all the important tax deadlines, what should you do with this information now?
Begin by sorting out the dates that apply to you and your business, then stick them in your calendar.
The next immediate step would be to set a few reminders for each date.
When should you set the reminder? It should be early enough for you to obtain all the necessary information, send it to your accountant, and allow them to file.
This can be as early as 2 months in some circumstances. Just remember, when it comes to your tax information it is nearly impossible to get the information to your accountant too early.
Once you have your dates scheduled in your calendar there are a few extra steps you can take to make sure you are ready for any deadline that approaches.
Obtain the necessary W-9’s and updated W-4’s.
As you work with more employees and independent contractors, collect those forms as soon as someone is hired.
Otherwise, it can be a real challenge to complete the necessary paperwork if the contract were to end abruptly or if they decline to sign it. Please note the changes in the California AB (5) Ruling regarding stricter standards in worker classifications.
Have well managed records.
Probably the most important part in preparing for a smooth tax season is having well-managed records.
Whether it is business expenses, income, or W-9’s, each part can help make sure you get the greatest deduction in a timely manner.
Want to learn more about how to create a tax plan? Check out this article on How to Create a Tax Plan For 2019.
This publication is designed to provide information on federal tax and accounting laws and/or regulations. It is presented with the understanding that the author is not rendering legal or accounting services.
This text is not intended to address every situation that arises or provide specific, strategic tax and/or accounting planning advice. This text should not be used solely to answer tax and/or accounting questions and you should consult additional sources of information, as needed, to determine the solution to tax and/or accounting questions.
This text has been prepared with due diligence. However, the possibility of mechanical or human error does exist and the author accepts no responsibility or liability regarding this material and its use. This text is not intended or written by the practitioner to be used and cannot be used by a taxpayer or tax return preparer, for the purpose of avoiding penalties that may be imposed.