Now that the holidays are over with, it’s time to get your 2019 tax information in order. And whether you’re running a business or just planning to file your own taxes, keeping track of all the important dates can be a chore in and of itself. It’s where a qualified and credible CPA can come in handy, especially when it comes to managing your tax calendar and keeping you on track to meet deadlines.
To get you prepped for the tax season in the meantime, here’s a look at some key dates to mark on your calendar, no matter whether you’re a businesses or just filing as an individual:
- April 15, 2020: This is the big day that you need to need to file a tax return by. Circle it, set a reminder on your phone — just make sure that you have everything in order by this date. Failure to file by this date, and the IRS could sack you with a 25 percent penalty on any unpaid taxes. Wait longer than 60 days and the minimum penalty is the lesser of either $210 or 100% of any taxes you owe. If you already owe money in taxes, you don’t want to file late and owe even more.
- October 15, 2020: If you were granted a filing extension from the IRS, this is your new deadline to file your 2019 income taxes. A good CPA can also help you file for a filing extension.
Figuring out business taxes is quite a bit more complex, as there are various dates you need to be mindful of. Let’s start with some miscellaneous dates you need to hit:
- January 15, 2020: If you make estimated tax payments each year, this is the day that 2019 fourth quarter payments are due by.
- January 31, 2020: Be sure your business has all of its W-2 forms out to employees (or independent contractors) by this date, and the information is filed with the IRS.
- February 29, 2020: If your business reports on 1099s, this is the deadline to file information returns.
- April 1, 2020: If your business plans to file 1099s electronically, April 1, 2020, is the deadline. If your business isn’t, then you’ll have to file by the February 29, 2020 date above.
And now some important tax return deadlines to keep in mind:
- March 15, 2020: Is your business an S-corporation or partnership? If so, this is the deadline to file returns by. Even if your business files for an extension, your liability is still due on this date.
- April 15, 2020: Corporate tax returns are due on this date.
Similar to individual filing, you’ll be socked with some hefty fees if you fail to file on time. For businesses, the penalty is 5 percent of the taxes you owe per month for the initial five months. That could be up to 25 percent of your tax bill. You’ll also likely be hit with interest from the IRS as well. If you’re a partner, you could be held liable for any unpaid taxes.
The bottom line is to ensure that you have your taxes in order in advance so that you’re not scrambling at the last minute. This only leads to a greater likelihood of mistakes and the possibility of not getting your taxes filed on time. Whether you’re filing as an individual or as a business, know one thing: it’s illegal to not file a tax return. But if for some reason you don’t file on time, it’s always best to resolve the issue sooner rather than later and work toward getting back into good standing with the IRS.
For more information on the key tax deadlines you need to know for filing your 2019 taxes and for assistance with filing, contact us today.