taxes

2018 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2018. 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.

October 15

  • If a calendar-year C corporation that filed an automatic six-month extension:
    • File a 2017 income tax return (Form 1120) and pay any tax, interest and penalties due.
    • Make contributions for 2017 to certain employer-sponsored retirement plans.

October 31

  • Report income tax withholding and FICA taxes for third quarter 2018 (Form 941) and pay any tax due. (See exception below under “November 13.”)

November 13

  • Report income tax withholding and FICA taxes for third quarter 2018 (Form 941), if you deposited on time and in full all of the associated taxes due.

December 17

  • If a calendar-year C corporation, pay the fourth installment of 2018 estimated income taxes.

If you have questions or need help preparing for one of the upcoming tax deadlines, please reach out to your Linkenheimer CPA.

By |September 13th, 2018|filing deadline, tax deadlines|0 Comments

2018 Q3 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the second quarter of 2018. 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.

July 31

  • Report income tax withholding and FICA taxes for second quarter 2018 (Form 941), and pay any tax due. (See the exception below, under “August 10.”)
  • File a 2017 calendar-year retirement plan report (Form 5500 or Form 5500-EZ) or request an extension.

August 10

  • Report income tax withholding and FICA taxes for second quarter 2018 (Form 941), if you deposited on time and in full all of the associated taxes due.

September 17

  • If a calendar-year C corporation, pay the third installment of 2018 estimated income taxes.
  • If a calendar-year S corporation or partnership that filed an automatic six-month extension:
    • File a 2017 income tax return (Form 1120S, Form 1065 or Form 1065-B) and pay any tax, interest and penalties due.
    • Make contributions for 2017 to certain employer-sponsored retirement plans.

If you have any questions, please contact your Linkenheimer CPA.

By |June 22nd, 2018|tax, tax deadlines|0 Comments

IRS Releases Updated Withholdings Calculator and 2018 W-4 Form

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The IRS has completed updating its online withholding calculator that individual taxpayers can use to determine how many withholding allowances they should claim for 2018. The IRS also issued a new 2018 Form W-4Employee’s Withholding Allowance Certificate. The IRS had previously announced that taxpayers could use the old 2017 Form W-4, as modified in Notice 2018-14, until 30 days after the new form was issued.

The calculator and new Form W-4 are designed to implement changes made by the Tax Cuts and Jobs Act (passed earlier this year), which increased the standard deduction, removed personal exemptions, increased the child tax credit, limited or discontinued certain deductions, and changed the tax rates and brackets, among many other changes.

To use the calculator, taxpayers should have certain information available, including an estimate of their 2018 income and other items that affect their taxes, including the number of children claimed for the child tax credit and the earned income tax credit. The IRS emphasized that the calculator is used to compute the amount of tax to be withheld in 2018, not for 2017. […]

By |March 2nd, 2018|irs, New Tax Laws, withhold|0 Comments

IRS Gives Tax Relief to Victims of California Wildfires; Extension Filers Have Until Jan. 31 to File

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The following information is from the IRS:

Victims of wildfires ravaging parts of California now have until Jan. 31, 2018, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today.

This includes an additional filing extension for taxpayers with valid extensions that run out this coming Monday, Oct. 16.

Currently, the IRS is providing relief to seven California counties: Butte, Lake, Mendocino, Napa, Nevada, Sonoma and Yuba. Individuals and businesses in these localities, as well as firefighters and relief workers who live elsewhere, qualify for the extension. The agency will continue to closely monitor this disaster and may provide other relief to these and other affected localities.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Oct. 8, 2017. As a result, affected individuals and businesses will have until Jan. 31, 2018, to file returns and pay any taxes originally due during this period.

This includes the Jan. 16, 2018 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2016 income tax returns that received a tax-filing extension until Oct. 16, 2017. The IRS noted, however, that […]

By |October 13th, 2017|Community, disaster, irs, relief|0 Comments

Equifax Data Breach- What You Should Know

The Equifax data breach, which is estimated to have impacted 143 million Americans – nearly half the US population – is considered one of largest data breaches in history. So there is a good chance you or someone you know will be impacted by it. While hackers and scammers have been targeting innocent consumers for decades, this data breach will only complicate matters. But there are steps you can take which should allow you to rest a little easier.

  1. First, you need to determine if any of your information was exposed or has been manipulated. You can do this by entering your last name and the last six digits of your Social Security number at Equifax’s website. The site will tell you if you’ve been affected by the data breach. Side note- people have reported that one day it will tell them they aren’t affected, but when they try again later they are, so it would be worthwhile to try it a few times to make sure they provide consistent info.
  2. Whether or not you were exposed, Equifax has set up a free one-year monitoring service called “TrustID Premier” which you can sign up for. […]
By |October 6th, 2017|fraud, irs|0 Comments

Real Estate Agent Not Permitted to Deduct Rental Losses

For our clients out there who are real estate agents and property owners: The taxpayer was a licensed real estate agent who owned rental properties. For 2006 and 2007, she deducted a total of $78,543 in rental losses. Upon audit, the IRS disallowed these losses because the taxpayer failed to show she materially participated in the rental activity. The taxpayer argued that her status as a real estate professional automatically rendered the losses nonpassive, regardless of material participation. The Court of Appeals for the Ninth Circuit sided with the IRS, holding that although real estate professionals are not subject to the per se rule under IRC Sec. 469(c)(2) that rental losses are passive, they must still show material participation before deducting rental losses. Therefore, the taxpayer was not entitled to deduct the losses.

If you have any questions, please contact your Linkenheimer CPA.

 

By |August 19th, 2016|deduction, irs|0 Comments

March Madness News- How Do I Report Fantasy Sports Winnings?

It’s that time of year again- March Madness is upon us, as is the time to file your taxes. A pressing question on the minds of many Americans this time of year is how to report fantasy sports income on their tax returns. The answer is relatively simple.  Assuming your involvement in fantasy sports does not rise to the level of a trade or business, this income is reported as hobby income. You claim the winnings (net of any entry fees) as other income on line 21 of your Form 1040, and if you are able to take advantage of itemized deductions, you can write off related expenses (i.e. entry fees which did not result in any winnings) on Schedule A, subject to a few important limitations: First, your expenses are deductible only to the extent of the related income you report on line 21. Second, like investment adviser fees, any related expenses are reported as miscellaneous itemized deductions, and you only benefit to the extent your total miscellaneous itemized deductions exceed 2% of your adjusted gross income. Additionally, these deductions may be eliminated completely if you are subject to alternative minimum tax. Also […]

By |April 1st, 2016|income tax, report|0 Comments

1099 Requirements for 2015

The IRS requires that you file information returns (1099’s) for cash and check payments issued by your trade or business to individuals not treated as your employees as well as non-incorporated entities. The IRS strictly enforces the requirements and aggressively audits this area of the law; additionally, there are numerous penalties that may be assessed if you fail to comply. We recommend that PRIOR to making payments for services, you obtain taxpayer identification (ID) numbers from all of your service vendors. If they don’t provide you a SSN or IRS business ID number (EIN), you are required to withhold taxes on payments to that vendor. A 1099 form must be filled in if:

Amount Requiring Reporting

Contract Labor, Commissions, Director Fees and
Other Non-employee Compensation                                                      $600 or more

Dividends, Interest and Royalties                                                            $10 or more

Professional Fees               […]

By |March 11th, 2016|irs, Uncategorized|0 Comments

Changes to Small Business Health Care Tax Credit

Small employers should be aware of changes to the small business health care tax credit, a provision in the Affordable Care Act that gives a tax credit to eligible small employers who provide health care to their employees.

Beginning in 2014, there are changes to the tax credit that may affect your small business or tax-exempt organization:

  • Credit percentage increased from 35 percent to 50 percent of employer-paid premiums; for tax-exempt employers, the percentage increased from 25 percent to 35 percent.
  • Small employers may claim the credit for only two consecutive taxable years beginning in tax year 2014 and beyond.
  • For 2014, the credit is phased out beginning when average wages equal $25,400 and is fully phased out when average wages exceed $50,800. The average wage phase out is adjusted annually for inflation.
  • Generally, small employers are required to purchase a Qualified Health Plan from a Small Business Health Options Program Marketplace to be eligible to claim the credit.  Transition relief from this requirement is available to certain small employers.

Small employers may still be eligible to claim the tax credit for tax years 2010 through 2013.   Employers who were eligible to […]

By |February 26th, 2015|affordable care act|0 Comments