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February, 2023

QSBS

Small Business

Tax Tips

Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

  • 1202 Tax Code
  • 1202 Regulations

    Don't Break the Law: Comply with 1202 Regulations

    [caption id="attachment_2213" align="alignright" width="300"]1202 Regulations 1202 Regulations[/caption] As a small business owner, you are responsible for complying with all laws and regulations, including 1202. As an employer, it is important to be in compliance with all labor laws. The 1202 regulations specifically govern the hiring of foreign workers. These regulations state that an employer must not hire a foreign worker if the hiring would adversely affect the wages and working conditions of U.S. workers. This article will briefly outline what 1202 is and how it affects you as an Amazon seller. The 1202 regulations were created in order to protect the wages and working conditions of American workers. The 1202 regulations specifically govern the hiring of foreign workers. If you violate the 1202 regulations, you may be subject to civil and/or criminal penalties. As a small business owner, it is important to be aware of these regulations and to make sure that you are in compliance. The employer must ensure that the foreign worker is not working in a job that has been designated as hazardous by the U.S. Department of Labor. The employer must pay the foreign worker the same wages and benefits as U.S. workers. Violation of the 1202 regulations can result in civil and/or criminal penalties.

    How do the 1202 Regulations Affect Small Business Owners

    Small business owners need to be aware of the 1202 Regulations and how they may affect their business. The regulations are in place to protect the wages and working conditions of U.S. workers. These regulations affect small business owners who hire foreign workers. Under the 1202 regulations, an employer cannot hire a foreign worker if the hiring would adversely affect the wages and working conditions of U.S. workers. This includes workers who are already employed by the employer. The regulations also state that an employer must not displace a U.S. worker by hiring a foreign worker. The regulations are designed to protect U.S. workers from being replaced by foreign workers who are willing to work for lower wages. The regulations also ensure that foreign workers are not hired to fill positions that could be filled by qualified U.S. workers.

    What are the Consequences for Violating the 1202 Regulations

    Small business owners who violate the 1202 Regulations can face significant consequences, including fines and jail time. Fines can range from $1,000 to $10,000 per violation. Jail time is possible for up to one year per violation. These penalties can be increased if the employer is found to have knowingly violated the regulations. You can also be required to pay back wages to any workers who were adversely affected by the violation. The best way to avoid these penalties is to ensure you are in compliance with the 1202 Regulations. The 1202 regulations are important for small business owners to be aware of. These regulations can have a significant impact on your business if you are not in compliance. Make sure you understand the regulations and how they apply to your business. This will help you avoid any penalties and keep your business in compliance.
    Qualified Small Business Stock Inc https://www.google.com/maps?cid=14731372876203948838
    14855 S 46th St., Phoenix, AZ 85044
    (480) 734-3758

  • Small Startup Company Stocks

    What to Watch Out for When Investing in Small Startup Company Stocks

    [caption id="attachment_4505" align="alignright" width="300"]Small Business Investment Small Business Investment[/caption] When investing in stocks, it's important to do your research first. You want to make sure you're getting a good return on your investment, and not taking too much of a risk. When investing in small startup company stocks, there are a few things you need to watch out for. Many of these companies are unproven and may not be around for long. Their stocks may be overvalued, and you could end up losing money if the company goes under. Make sure you know what you're doing before you invest, and don't put all your eggs in one basket. When you're looking to invest in a small startup company, it's important to be aware of the risks involved. Many small startups don't have the solid financial backing or management team that larger companies do, which can make them more volatile and prone to failure. That said, there can also be big rewards for investors who are willing to take on the risks. Here are a few things to watch out for when considering investing in a small startup company:
    1. The company's financials: It's important to take a close look at the company's financial situation before investing. Make sure they are not overvalued and that there is a solid plan in place for how the company will make money.
    2. The management team: A strong management team is essential for any company, but it's especially important for startups. Make sure the team has a good track record and is experienced in running a business.
    3. The product or service: What is the company offering, and is there a market for it? Make sure you understand the product or service and believe in its potential before investing. This is especially important for tech startups, as many products never make it to market.
    4. The risks involved: Investing in a small startup is a risky proposition, so make sure you understand the risks involved before putting any money down. Be prepared to lose your investment, and don't invest more than you can afford to lose.
    5. The exit strategy: What is the company's plan for eventually selling or going public? Make sure you understand the exit strategy and are comfortable with it before investing. This is important because many startups never make it to an exit.
    6. The competition: What other companies are offering similar products or services? Make sure you understand the competitive landscape and believe the company has a chance to succeed. This is especially important for tech startups, as many new products or services fail to find a market.
    Investing in small startup companies can be a risky proposition, but there can also be big rewards for those who are willing to take on the risks. Be sure to do your research and understand the risks involved before investing. And don't forget, always diversify your portfolio to minimize the risk of losing money. By understanding the risks involved and doing your research, you can increase your chances of success when investing in small startup companies. Be sure to diversify your portfolio to minimize the risk of losing money, and always remember that there is no guarantee of success when investing in any stock, no matter how small the company may be.
    Qualified Small Business Stock Inc https://www.google.com/maps?cid=14731372876203948838
    14855 S 46th St., Phoenix, AZ 85044
    (480) 734-3758

  • 1202 Stock Requirements

    The Basics of 1202 Stock Requirements for a Small Business

    [caption id="attachment_4504" align="alignright" width="300"]Small Business Services Small Business Services[/caption] A 1202 stock requirement is a way of ensuring that your small business has the inventory necessary to continue operations. This requirement mandates that you maintain a specific level of inventory, usually in the form of raw materials or finished goods, in order to keep your business running smoothly. There are a few different ways to comply with a 1202 stock requirement, but the most common is to maintain a minimum level of inventory on hand at all times. This ensures that you have the materials necessary to meet customer demand and keep your business running smoothly. When starting a small business, there are many things to keep in mind in order for it to be successful. One of the most important is having the proper 1202 stock. This type of stock is essential for businesses that want to go public, as it allows them to do so with less paperwork and hassle. Additionally, it can also help businesses secure loans and other forms of financing. If you're thinking of starting a small business, make sure you are familseciar with the basics of 1202 stock requirements. To be eligible for 1202 stock, a company must be organized as a C corporation and have less than $50 million in assets. The company must also use the 1202 stock for qualified small business purposes, which include purchasing, constructing, or improving qualified property. Qualified property must be used for the active conduct of a trade or business, and it must be depreciable or amortizable under 1202 tax code. Finally, the company must have a valid stock option plan in place. There are a few things to keep in mind when complying with a 1202 stock requirement. First, you will need to maintain accurate records of your inventory levels. This includes both the quantity of inventory on hand and the value of that inventory. Second, you will need to have a plan in place for how you will replenish your inventory as it is sold. This may include setting up a system for reordering inventory from suppliers or manufacturing goods on-site. Finally, you will need to monitor your inventory levels closely to ensure that you are meeting the 1202 stock requirement.  This may involve regular inventory counts or using software to track inventory levels. By following these tips, you can ensure that your small business is in compliance with the 1202 stock requirement. If you're not sure whether your company meets all of the eligibility requirements for 1202 stock, it's a good idea to speak with an accountant or tax advisor. They can help you determine whether your company qualifies and, if so, how to take advantage of this opportunity. 1202 stock can be a great way to reduce the paperwork and hassle associated with taking your small business public. If you're thinking of starting a small business, make sure you are familiar with the basics of 1202 stock requirements. With a little planning and preparation, you can ensure that your business is compliant with all the necessary regulations.
    Qualified Small Business Stock Inc https://www.google.com/maps?cid=14731372876203948838
    14855 S 46th St., Phoenix, AZ 85044
    (480) 734-3758

  • 1202 IRC

    1202 IRC for Small Business: What is It and How can I Use It?

    [caption id="attachment_4503" align="alignright" width="300"]Accounting Services Accounting Services[/caption] Small businesses can use 1202 IRC to reduce their income tax liability. 1202 IRC is a small business program that offers income tax credits for businesses that invest in research and development. To qualify, businesses must spend money on research and development projects in Canada, and the work must be new, innovative, and have a scientific or technological basis. This article will provide an overview of what 1202 IRC is and how small businesses can use it.

    What is 1202 IRC?

    1202 IRC is a section of the Internal Revenue Code that allows small businesses to claim a deduction for certain qualified expenses. 1202 provides an incentive for non-corporate taxpayers to invest in small businesses. The section 1202 capital gains exclusion from federal income tax on the sale of small business stock is the underlying purpose of this IRC section. A small business stock held for at least five years before selling will have a portion or all of its realized gains excluded from federal tax. Businesses must meet the requirements specified in order to obtain this benefit. The 1202 IRC allows small businesses to deduct up to $5,000 of their research and development (R&D) expenses. It is important to note that the $5,000 deduction is per tax year, and not per project. This means that if a small business has multiple R&D projects underway, they can deduct up to $5,000 for each one. The 1202 IRC also allows businesses to carry forward any unused deduction to future tax years.

    Why should small businesses care about it?

    Small businesses should care about 1202 IRC because it offers tax credits for investing in research and development. This can be a valuable way to reduce your income tax liability. 1202 IRC is a small business program that offers income tax credits for businesses that invest in research and development. The 1202 IRC was created to encourage businesses to invest in research and development projects in Canada. This is because research and development can lead to new and innovative products or services, which can have a positive impact on the economy.

    How can small businesses use 1202 IRC?

    Small businesses can use 1202 IRC to reduce their income tax liability. The 1202 IRC can be used by small businesses to offset the cost of research and development projects in Canada. This can be a great way to reduce your income taxes, and it can also help you fund new and innovative projects. Your business must meet certain criteria to qualify for 1202 IRC. 1202 IRC is a small business tax credit that can be used to offset income tax liability. If you are looking for ways to reduce your income tax burden, consider investing in research and development projects that meet the requirements of 1202 IRC. By doing so, you can take advantage of this tax credit and improve your bottom line. If you have any questions about IRC 1202 or how to qualify for it, be sure to speak with a qualified tax professional. They can help you determine if your business is eligible and how to maximize the credit.
    Qualified Small Business Stock Inc https://www.google.com/maps?cid=14731372876203948838
    14855 S 46th St., Phoenix, AZ 85044
    (480) 734-3758

  • 1202 Tax Code

    The Pros and Cons of the 1202 Tax Code for Small Businesses

    [caption id="attachment_4498" align="alignright" width="300"]Small Business Accounting Small Business Accounting[/caption] The 1202 tax code offers small businesses a way to avoid some taxes on the sale of qualified small business stock. This can be beneficial for businesses who are looking to invest in themselves or expand their operations. However, there are some drawbacks to this tax code as well. Let's take a look at the pros and cons of this tax code so you can decide if it's right for your small business. Small businesses rejoice! The 1202 tax code is finally in effect and it offers a number of benefits for small businesses owners. This new code allows small businesses to deduct up to $5,000 of their income taxes per year. This deduction is available for both sole proprietorships and S-Corporations. This is great news for small businesses who are struggling to make ends meet. However, there are some drawbacks to the 1202 tax code.

    PROS:

    1. The 1202 tax code can help small businesses save money on taxes. This is because small businesses can deduct up to $5,000 of their income taxes per year. Your business will save money on taxes if you are able to deduct this amount.
    2. The 1202 tax code is available for both sole proprietorships and S-Corporations. This means that more small businesses will be able to take advantage of this tax deduction. Your business does not have to be a certain size or structure in order to qualify.
    3. The 1202 tax code can help small businesses invest in themselves. This is because the deduction can be used to offset the cost of buying new equipment or expanding operations. You can use the money you save on taxes to reinvest in your business.
    4. The 1202 tax code can help small businesses create jobs. This is because businesses can use the money they save on taxes to hire new employees. This can help to boost the economy and create new jobs.
    5. The 1202 tax code can help small businesses attract new investors. This is because businesses can use the deduction to offset the cost of issuing new stock. This can help to attract new investors and raise capital for your business.

    CONS:

    1. The 1202 tax code has some restrictions. For example, your business must have been in operation for at least five years in order to qualify. This can be a problem for businesses that are just starting out.
    2. The 1202 tax code is only available for businesses that sell qualified small business stock. This means that businesses that do not sell this type of stock will not be able to take advantage of the deduction.
    3. The 1202 tax code has a maximum deduction of $5,000. This means that businesses will not be able to deduct more than this amount. This can be a problem for businesses that have high tax liability.
    4. The 1202 tax code is only available for a limited time. The deduction will only be available for tax years 2018 through 2025. This means that businesses will need to plan ahead if they want to take advantage of the deduction.
    5. The 1202 tax code may not be beneficial for businesses that are not profitable. This is because businesses can only deduct the amount of taxes they owe. If your business is not profitable, you will not be able to take advantage of the deduction.
    As you can see, there are both pros and cons to the 1202 tax code. You will need to decide if the benefits of this QSBS deduction are worth the restrictions. Only you can decide if the 1202 tax code is right for your small business.
    Qualified Small Business Stock Inc https://www.google.com/maps?cid=14731372876203948838
    14855 S 46th St., Phoenix, AZ 85044
    (480) 734-3758

TAX DUE DATES FOR DEC 2022

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TAX DUE DATES FOR NOV 2022

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TAX DUE DATES FOR OCT 2022

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TAX DUE DATES FOR SEPT 2022

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TAX DUE DATES FOR AUGust 2022

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TAX DUE DATES FOR JULY 2022

JULY 11

Employees Who Work for Tips – If you received $20 or more in tips during June, report them to your employer. You can use Form 4070.

JULY 15

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in June.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in June.

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Copyright © 2022   All materials contained in this document are protected by U.S. and international copyright laws. All other trade names, trademarks, registered trademarks and service marks are the property of their respective owners.

TAX DUE DATES FOR JUNE 2022

june 10

Employees – who work for tips. If you received $20 or more in tips during May, report them to your employer. You can use Form 4070.

june 15

Individuals – If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 or Form 1040-SR and pay any tax, interest, and penalties due. If you want additional time to file your return, file Form 4868 to obtain 4 additional months to file. Then file Form 1040 or Form 1040-SR by October 17.

However, if you are a participant in a combat zone you may be able to further extend the filing deadline.

Individuals – Make a payment of your 2022 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the second installment date for estimated tax in 2022.

Corporations – Deposit the second installment of estimated income tax for 2022. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in May.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in May.

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Copyright © 2022   All materials contained in this document are protected by U.S. and international copyright laws. All other trade names, trademarks, registered trademarks and service marks are the property of their respective owners.

TAX DUE DATES FOR MAY 2022

MAY 2

Employers – Federal unemployment tax. Deposit the tax owed through April if more than $500.

Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the first quarter of 2022. 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 quarter in full and on time, you have until May 10 to file the return.

MAY 10

Employees who work for tips – If you received $20 or more in tips during April, report them to your employer. You can use Form 4070.

Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the first quarter of 2022. This due date applies only if you deposited the tax for the quarter in full and on time.

MAY 16

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in April.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in April.

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Copyright © 2022   All materials contained in this document are protected by U.S. and international copyright laws. All other trade names, trademarks, registered trademarks and service marks are the property of their respective owners.

TAX DUE DATES FOR APRIL 2022

APRIL 11

Employees who work for tips – If you received $20 or more in tips during March, report them to your employer. You can use Form 4070.

 

APRIL 18

Individuals – File an income tax return for 2021 (Form 1040 or Form 1040-SR) and pay any tax due. If you live in Maine or Massachusetts, you may file by April 19. If you want an automatic 6-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return and pay what you estimate you owe in tax to avoid penalties and interest. Then file Form 1040 or Form 1040-SR by October 17.

Household Employers – If you paid cash wages of $2,300 or more in 2021 to a household employee, file Schedule H (Form 1040 or Form 1040-SR) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H (Form 1040 or Form 1040-SR) if you paid total cash wages of $1,000 or more in any calendar quarter of 2020 or 2021 to household employees.

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in March.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in March.

Individuals – If you are not paying your 2022 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2022 estimated tax. Use Form 1040-ES.

Corporations – File a 2021 calendar year income tax return (Form 1120) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe in taxes.

Corporations – Deposit the first installment of estimated income tax for 2022. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

MAY 2

Employers – Federal unemployment tax. Deposit the tax owed through April if more than $500.

Employers – Social Security, Medicare, and withheld income tax. File form 941 for the first quarter of 2022. 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 quarter in full and on time, you have until May 10 to file the return.

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Copyright © 2022   All materials contained in this document are protected by U.S. and international copyright laws. All other trade names, trademarks, registered trademarks and service marks are the property of their respective owners.

TAX DUE DATES FOR MARCH 2022

MARCH 1

Farmers and Fisherman – File your 2021 income tax return (Form 1040 or Form 1040-SR) and pay any tax due. However, you have until April 18 (April 19 if you live in Maine or Massachusetts) to file if you paid your 2021 estimated tax by January 18, 2022.

MARCH 2

Health Coverage Reporting – If you are an Applicable Large Employer, provide Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to full-time employees. For all other providers of minimum essential coverage, provide Form 1095-B, Health Coverage, to responsible individuals.

MARCH 10

Employees who work for tips – If you received $20 or more in tips during February, report them to your employer. You can use Form 4070.

MARCH 15

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in February.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in February.

Partnerships – File a 2021 calendar year income tax return (Form 1065). Provide each partner with a copy of their Schedule K-1 (Form 1065-B) or substitute Schedule K-1. To request an automatic 6-month extension of time to file the return, file Form 7004. Then file the return and provide each partner with a copy of their final or amended (if required) Schedule K­1 (Form 1065) by September 15.

S Corporations – File a 2021 calendar year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120S), Shareholder’s Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe in tax. Then file the return, pay any tax, interest, and penalties due and provide each shareholder with a copy of their Schedule K-1 by September 15.

S Corporation Election – File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S corporation beginning with calendar year 2022. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2023.

MARCH 31

Electronic Filing of Forms – File Forms 1097, 1098, 1099 (except Form 1099-NEC), 3921, 3922, and W-2G with the IRS. This due date applies only if you file electronically. The due date for giving the recipient these forms generally remains January 31.

Electronic Filing of Form W-2G – File copies of all the Form W-2G (Certain Gambling Winnings) you issued for 2021. This due date applies only if you electronically file. The due date for giving the recipient these forms remains January 31.

Electronic Filing of Forms 8027 – File copies of all the Forms 8027 you issued for 2021. This due date applies only if you electronically file.

Electronic Filing of Forms 1094-C and 1095-C and Forms 1094-B and 1095-B – If you’re an Applicable Large Employer, file electronic forms 1094-C and 1095-C with the IRS. For all other providers of minimum essential coverage, file electronic Forms 1094-B and 1095-B with the IRS.

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Copyright © 2022   All materials contained in this document are protected by U.S. and international copyright laws. All other trade names, trademarks, registered trademarks and service marks are the property of their respective owners.

TAX DUE DATES FOR FEBRUARY 2022

FEBRUARY 10

Employees – who work for tips. If you received $20 or more in tips during January, report them to your employer. You can use Form 4070.

Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2021. This due date applies only if you deposited the tax for the quarter in full and on time.

Farm Employers – File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2021. This due date applies only if you deposited the tax for the year in full and on time.

Certain Small Employers – File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2021. This tax due date applies only if you deposited the tax for the year in full and on time.

Employers – Nonpayroll taxes. File Form 945 to report income tax withheld for 2021 on all nonpayroll items. This due date applies only if you deposited the tax for the year in full and on time.

Employers – Federal unemployment tax. File Form 940 for 2021. This due date applies only if you deposited the tax for the year in full and on time.

FEBRUARY 15

Individuals – If you claimed exemption from income tax withholding last year on the Form W-4 you gave your employer, you must file a new Form W-4 by this date to continue your exemption for another year.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in January.

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in January.

All businesses. Give annual information statements to recipients of certain payments made during 2021. You can use the appropriate version of Form 1099 or other information return. This due date applies only to payments reported on Form 1099-B, Form 1099-S, and substitute payments reported in Box 8 or gross proceeds paid to an attorney reported in Box 10 of Form 1099-MISC.

FEBRUARY 16

Employers – Begin withholding income tax from the pay of any employee who claimed exemption from withholding in 2021, but did not give you a new Form W-4 to continue the exemption this year.

FEBRUARY 28

Businesses – File information returns (for example, certain Forms 1099) for certain payments you made during 2021. However, Form 1099-NEC reporting nonemployee compensation must be filed by January 31. There are different forms for different types of payments. Use a separate Form 1096 to summarize and transmit the forms for each type of payment. See the General Instructions for Certain Information Returns for information on what payments are covered, how much the payment must be before a return is required, what form to use, and extensions of time to file.

If you file Forms 1097, 1098, 1099 (except a Form 1099-NEC reporting nonemployee compensation), 3921, 3922 or W-2G electronically, your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms generally remains January 31.

Payers of Gambling Winnings – File Form 1096, Annual Summary and Transmittal of U.S. Information Returns, along with Copy A of all the Forms W-2G you issued for 2021. If you file Forms W-2G electronically, your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms remains January 31.

Health Coverage Reporting – If you are an Applicable Large Employer, file paper Forms 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and 1095-C with the IRS. For all other providers of minimum essential coverage, file paper Forms 1094-B, Transmittal of Health Coverage Information Returns, and 1095-B with the IRS. If you are filing any of these forms with the IRS electronically, your due date for filing them will be extended to March 31.

Large Food and Beverage Establishment Employers – with employees who work for tips. File Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically your due date for filing them with the IRS will be extended to March 31.

MARCH 1

Farmers and Fisherman – File your 2021 income tax return (Form 1040 or Form 1040-SR) and pay any tax due. However, you have until April 15 (April 19 if you live in Maine or Massachusetts) to file if you paid your 2021 estimated tax by January 18, 2021.

MARCH 2

Health Coverage Reporting – If you are an Applicable Large Employer, provide Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to full-time employees. For all other providers of minimum essential coverage, provide Form 1095-B, Health Coverage, to responsible individuals.

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Copyright © 2022   All materials contained in this document are protected by U.S. and international copyright laws. All other trade names, trademarks, registered trademarks and service marks are the property of their respective owners.

TAX DUE DATES FOR JANUARY 2022

DURING JANUARY

All employers – Give your employees their copies of Form W-2 for 2021 by January 31, 2022. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee of the posting.

JANUARY 3

Employers – Payment of deferred employer share of social security tax from 2020. If the employer deferred paying the employer share of social security tax or the railroad retirement tax equivalent in 2020, pay 50% of the deferred amount of the employer share of social security tax by January 3, 2022. The remaining 50% of the deferred amount of the employer share of social security tax is due by January 3, 2023. Any payments or deposits made before January 3, 2022, are first applied against the payment due by January 3, 2022, and then applied against the payment due on January 3, 2023.

Employers – Payment of the deferred employee share of social security tax from 2020. If the employer deferred withholding and payment of the employee share of social security tax or the railroad retirement tax equivalent on certain employee wages and compensation between September 1, 2020, and December 31, 2020, it should have withheld and paid those taxes ratably from wages paid to the employee between January 1, 2021, and December 31, 2021. The employer is liable to pay the deferred taxes to the IRS and must do so before January 3, 2022.

JANUARY 10

Employees – who work for tips. If you received $20 or more in tips during December 2021, report them to your employer. You can use Form 4070, Employee’s Report of Tips to Employer.

JANUARY 18

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in December 2021.

Individuals – Make a payment of your estimated tax for 2021 if you did not pay your income tax for the year through withholding (or did not pay in enough tax that way). Use Form 1040-ES. This is the final installment date for 2021 estimated tax. However, you do not have to make this payment if you file your 2021 return (Form 1040 or Form 1040-SR) and pay any tax due by January 31, 2022.

Employers – Nonpayroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in December 2021.

Farmers and Fisherman – Pay your estimated tax for 2021 using Form 1040-ES. You have until April 18 (April 19 if you live in Maine or Massachusetts) to file your 2021 income tax return (Form 1040 or Form 1040-SR). If you do not pay your estimated tax by January 18, you must file your 2021 return and pay any tax due by March 1, 2022, to avoid an estimated tax penalty.

JANUARY 31

Employers – Give your employees their copies of Form W-2 for 2021. If an employee agreed to receive Form W-2 electronically, have it posted on a website and notify the employee of the posting. File Form W-3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W-2 you issued for 2021.

Payers of nonemployee compensation – File Form 1099-NEC for nonemployee compensation paid in 2021.

Individuals – who must make estimated tax payments. If you did not pay your last installment of estimated tax by January 18, you may choose (but are not required) to file your income tax return (Form 1040 or Form 1040-SR) for 2021 by January 31. Filing your return and paying any tax due by January 31, 2022, prevents any penalty for late payment of the last installment. If you cannot file and pay your tax by January 31, file and pay your tax by April 18 (April 19 if you live in Maine or Massachusetts).

Employers – Federal unemployment tax. File Form 940 for 2021. 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 already deposited the tax for the year in full and on time, you have until February 10 to file the return.

Farm Employers – File Form 943 to report social security and Medicare taxes and withheld income tax for 2021. 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 year in full and on time, you have until February 10 to file the return.

Certain Small Employers – File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2021. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more from 2021 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return. If you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.

Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2021. 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 quarter in full and on time, you have until February 10 to file the return.

Employers – Nonpayroll taxes. File Form 945 to report income tax withheld for 2021 on all nonpayroll items, including backup 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.

Payers of Gambling Winnings – If you either paid reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of Form W-2G.

Businesses – Give annual information statements to recipients of certain payments made during 2021. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be issued electronically with the consent of the recipient. This due date only applies to certain types of payments.

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