More About Small Business Taxes
More About Small Business Taxes
How can you find a trusted and talented CPA tax accountant out of thousands in Fort Collins? And why is reputation so important? For one thing, tax duties are serious, and it can take too much time away from your business. Imagine the paperwork, financial analysis, money matter to settle for a clean tax record, financial decisions you have to make at the last minute, debts, and the list goes on. If you are not a tax expert, completing the task may seem impossible.
For a business, these are important matters that need special attention. Thus, the need for hiring the best CPA tax accountant. But how can you be sure you are picking the right person for the job?
We have tips to help you better understand how to find the best accountant for your situation, and information on the various small business tax services that we offer, which will help ease your financial burdens.
More About Small Business Taxes
How can you find a trusted and talented CPA tax accountant out of thousands in Fort Collins? And why is reputation so important? For one thing, tax duties are serious, and it can take too much time away from your business. Imagine the paperwork, financial analysis, money matter to settle for a clean tax record, financial decisions you have to make at the last minute, debts, and the list goes on. If you are not a tax expert, completing the task may seem impossible.
For a business, these are important matters that need special attention. Thus, the need for hiring the best CPA tax accountant. But how can you be sure you are picking the right person for the job?
We have tips to help you better understand how to find the best accountant for your situation, and information on the various small business tax services that we offer, which will help ease your financial burdens.
Tax deadlines are important to avoid unnecessary expenses, but it’s never too late to get the support of experienced business accounting support that can relieve your stress and manage your tax filing obligations. Even if you are late in the game when it comes to seeking a Fort Collins tax service, Steven J. Wick and Associates can help make the most of your tax return, finding deductions and credits you may not be aware of, and limiting your tax liability to save you and your business much needed time and money.
Overview of Important Tax Due Dates
We’ve broken out a quick look at some important tax due dates for businesses (small and large) in Fort Collins and Colorado as a whole. It is important to talk to a qualified CPA about which deadlines you need to meet.
Corporate & Individual Due Date Details
In the course of your business operations, the myriad of tax deadlines can seem impossible to keep track of. Here are just a few of the firm deadlines established by the IRS for business owners:
- Corporate Tax Deposit Dates: corporate tax deposits are due on the 15th of the 4th, 6th, 9th, and 12th months of the fiscal year. Meeting deadlines can be one of the most apparent reasons to employ the support of a skilled CPA.• April 15th: Most people know about this tax deadline for individual filers. This deadline also applies to most sole proprietorships, partnerships, and single-member LLCs. Corporations, even smaller entities, will need to conform to slightly different regulations.
• March 15th: Corporations that use the calendar year as their fiscal year must file their annual return by March 15th.• January 31st: This is the deadline for filing form 940 for most employers to file unemployment taxes. This is also the deadline for employers to provide W-2 information for employees. - Individual Tax Deposit Dates: Federal and Colorado deposits are typically due on the 15th of April, June, September, and January.
- Legal Holiday Exemptions: when a due date falls directly on a legal holiday, the taxes owed are due on the next business day.
Payroll Tax Deposit Dates and Details
- Payroll Deposits: payroll deposits are generally made on a semi-weekly or monthly basis. Dates are determined by taking note of reported taxes for the 4 quarters ending the previous June 30th of a calendar year.
- $50,000 or less: any employer reporting tax deposits of less than $50,000 will make monthly (on the 15th of each consecutive month) deposits.
- $50,000 or more: employers generating more than $50,000 in tax deposits must make semi-weekly deposits. When a payday falls on a Wednesday, Thursday, or Friday, a deposit must be made by the Wednesday following the original payment due date. Otherwise, deposits are due by the Friday following the original payment due date.
- $100,000 or more: companies that generate more than $100,000 in tax deposits must make all deposits by the following business day.
- New Firm Deposits: all new companies must make monthly deposits.
Employment Tax Dates and Details
January 31: FUTA, or the Federal Unemployment Tax Act, mandates that unemployment taxes be filed with form 940. Agricultural businesses file form 943 and some employers are asked to file form 944. W-2 wage and tax withholding statements for the previous year must also be provided to all regular employees.
February 28: By the end of February, employers must file form 1096 for payments and provide contractors with their copies of 1099 income statements. Businesses must also file their reporting of allocated tips and tip income if they are not going to file electronically. If filing via snail mail, copies of your W-2s are due by February 28 to the Social Security Administration.
March 31: This is the date that electronic filings of 1099s, for contractors, and 8027, for tipped employees, must be completed. If filing electronically, copies of your W-2s are due by March 31 to the Social Security Administration.
April 30: This is the first quarterly deadline for 941 filings. Deposits must be made within 30 days of this deadline or the IRS can begin assessing interest and penalties. These quarterly filings are also required by July 31st
- July 31, October 31, and January 31 (for the fourth quarter of the previous calendar year) are additional quarterly employment tax due dates
Dos and Don’ts of Income Tax Extensions and Tax Deadlines
The penalties for late filing or non-payment of shortfalls can be severe, so take advantage of available extensions when you need them, and get the business accounting support you need to stay on top of tax deadlines and manage your finances to account for these obligations. If you are looking for a Fort Collins tax service you can trust with your personal or business returns, the professionals at Steven J. Wick and Associates can help.
Do File for an Extension When You Need It
The Internal Revenue Service allows individual filers to file an automatic extension using form 4868, as well as an electronic extension through e-file. Your tax return deadline can be extended up to six months (until October 15th) as long as your automatic extension is filed by April 15th. No extensions will be offered after April 15th and your return will be subject to late filing and/or late payment penalties. For business owners or those filing a return for an estate or bankruptcy trust, form 7004 must be used. Form 7004 is comprised of three parts. Part I is used for an automatic five-month extension and part II is used for an automatic six-month extension. Part III is used for all filers to determine extension eligibility.
Do Take Advantage of Extensions for Special Circumstances
In some cases, late filings are caused by a lack of organization. For others, business owners and individual filers are simply trying to maximize their deductions and credits to avoid excessive tax liability. Certain individuals, such as those engaged in military service overseas, are granted an automatic extension of up to 90 or 180 days, depending on their special circumstances. To relieve stress and ensure an accurate return that maximizes your tax savings, an income tax extension can be a tremendous tool for personal sanity and business survival.
Don’t Avoid Timely Payment
For federal returns and Colorado returns, individuals and businesses are expected to make a payment based on their predicted tax obligation by April 15th. Any payment less than 90% of your actual tax shortfall will be subject to late payment penalties and interest. If possible, pay as much of your expected shortfall as possible, as any overpayment will simply result in a credit for you or your business. Interest on late payments is generally ½ of 1% of the amount owed per delinquent month. For a filing extension, the IRS will only notify the taxpayer if the request has been denied. If necessary, when filing for an extension, you can set up a payment plan to avoid penalties.
Don’t Let an Extension Lead to More Procrastination
Although the IRS will grant most extensions with “no questions asked”, it is important to remain diligent in gathering necessary forms, receipts, or other necessary documents to meet your extended deadline. With evolving tax regulations, many filers wait for amended reporting forms so that they can accurately depict their tax liability. If you expect your return to grant you a refund for overpayment, the IRS will still process your refund after you file your return. However, Sandra Block from USA Today suggests that a certain amount of risk might be attached to waiting for refunds, as delayed refunds give scam artists more access to identity theft opportunities.
Do File for an Extension, Even if you’re Unable to Pay
If your individual finances or business circumstances prevent you from paying your tax burden by April 15th, you should still file for an extension using either form 4868 or form 7004. Interest will still be owed for tax shortfalls on your return, but you can avoid late filing penalties and let the IRS know that your return is forthcoming. Failure to file an extension can lead to revenue agencies filing a return on your behalf with unfavorable calculations.
Minimizing Your Obligation and Hitting Deadlines with the Right Fort Collins Tax Professional CPA
With the right Fort Collins tax service, these deadlines don’t have to be such a burden. There are many ways that you can minimize your tax obligation, and many things that small businesses miss that can preserve their revenue and protect their business. There are a number of tax credits and deductions available to your small business, and proper accountancy throughout the year can help you identify ways to save money at each tax deadline. These can include common deductions for investments made on new equipment, deductions for depreciated equipment, property, or other assets, or even expenses like travel, new vehicles, or home office equipment.
Employment taxes can also feature a variety of deductions that some business owners may not know about. Contributions to pensions, 401k plans, and health benefits can be deducted from business income. Many business owners aren’t sure whether their charitable contributions can be deducted and how to do it. You need the support of tax professionals that know what a burden employment taxes, and business income taxes, can be on your enterprise. With the help of the small business package from Steven J. Wick and Associates, your tax problems can find solutions by skilled CPAs that have experience working with every type of Fort Collins small business.
