Horizons Fall/Winter 2019

Timely Reminders

December 16, 2019 C Corporations

January 15, 2020 Individuals If you are not paying all of your 2019 estimated income tax

February 15, 2020 All Employers Begin withholding income tax from the pay of any employee who claimed exemption from income tax withholding in 2019, but did not provide Form W-4, Employee’s Withholding Allowance Certificate, to continue the exemption in 2020.

Calendar year C Corporations deposit the fourth installment of estimated income tax for 2019. Reminder: The estimated tax due can be 100% of the estimated current year tax or 100% of the actual prior year tax, whichever is the lesser. However, “large” corporations cannot base estimated tax payments on prior year tax and must calculate quarterly estimates based on estimated current year tax. A corporation is considered a “large” corporation if it had taxable income of at least $1 million in any one of the three immediately preceding tax years.

through withholding, pay the fourth installment of your 2019 estimated tax using Form 1040-ES and applicable state form(s).

January 31, 2020 Businesses

March 2, 2020 Farmers & Fisherman

Issuers need to file 1099-MISC forms reporting non-employee

Can avoid estimated tax penalty if Form 1040 for 2019 is filed on or before March 2, 2020. Businesses Issuers need to file1099 forms if paper filing by March 2, 2020 (March 31, 2020 if electronically filing). Note: 1099-MISC forms reporting non-employee compensation in box 7 are due January 31, 2020. File a 2019 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, Deductions, Credits, Etc. If you want an automatic six-month extension of time to file the return, file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. Partnerships File a 2019 calendar year income tax return (Form 1065) and pay any tax due. Provide each shareholder with a copy of Schedule K-1(Form 1065), Shareholder’s Share of Income, Deductions, Credits, Etc. If you want an automatic six-month extension of time to file the return, file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. March 16, 2020 S Corporations

compensation in box 7 by January 31, 2020. For other 1099s and 1099- MISC with amounts in boxes other than 7, the filing deadline is February 28, 2020, if paper filing or March 31, 2020, if filing electronically. Reminder: most 1099s are still due to the recipient on January 31. All Employers File Form W-2s for 2019 with the Social Security Administration and provide copies to employees. File Form 941 for the fourth quarter of 2019. Deposit or pay any undeposited Social Security, Medicare, and withheld federal income tax.

December 31, 2019 Individuals & Cash Basis Businesses Pay amounts intended to be deducted on 2019 returns.

Individuals If you are over 70 ½ in 2019 and have an IRA or qualified retirement plan account, the minimum required distribution needs to be paid on or before December 31. Planning Point: if you have more than one IRA you do not have to take a distribution out of each. As long as the distribution is calculated using the total of all the IRA accounts, the distribution can come out of any of the IRAs or a combination. Individuals & Businesses Tax planning is best done before the end of the year. This will allow for time to make accounting elections or other actions to optimize tax for the year. Planning after the year end limits the amount of options available to achieve the desired result.

File Form 940 for 2019.

February 15, 2020 Individuals

If you claimed exemption from income tax withholding in 2019 on the Form W-4, Employee’s

Withholding Allowance Certificate, you gave to your employer, you must file a new Form W-4 by this date to continue your exemption for 2020.

Timely Reminders

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