Posts Tagged ‘Form 1040’

Brush Up On These New Tax Form Due Dates

Wednesday, June 29th, 2016
Tax Form Due Dates - Ohio CPA Firm

Want a tip to help you stay out of trouble with the IRS? Start studying up on the new tax form due dates.

Did you know that the IRS has changed the due dates for many of your tax return forms? These changes will be effective for taxable years starting after Dec. 31, 2015, meaning your 2016 tax returns filed next year (2017) will be impacted. Since some due dates have been altered quite a bit and others have not even been touched, it’s incredibly important to pay attention to the changes.

Read Also: Join The Fight Against Identity Theft & Income Tax Fraud

Stay out of trouble with the IRS. Start studying up on the new tax form due dates, below.

  • Form 1065 pertaining to partnerships operating on a calendar year are now due March 15. A six-month extension from that date is allowable. Previously, the due date was April 15. According to the new law, partnership returns are now due on the 15th day of the third month after the year end.
  • Form 1041, which refers to trust and estate taxes, gained a 5½-month extension from the original filing date of April 15. This was an increase of half a month.
  • Your 2016 C Corp tax returns for returns that impact businesses with traditional Dec. 31 and June 30 year-end deadlines will be due on the 15th of the fourth month after the year end. A six-month extension from that date will be allowed.

o   If your year-end is before Jan. 1, 2016, your due date is April 15, with a Sept. 15, extension.

o   If your year-end is after Dec. 31, 2015, your new due date is April 15 with an Oct. 15, extension.

  • For C Corps operating outside a traditional fiscal year end (with fiscal years other than Dec. 31 and June 30), the new due date for your tax return forms is the 15th day of the 4th month after year end and the 15th day of the 10th month after year end.
  • A special rule for C Corps with a June 30 fiscal year end was established and will impact the due date for Form 1120. The new due date will go into effect for returns with taxable years beginning after Dec. 31, 2015 for the 2017 filing season.

o   Before Jan. 1, 2016, Form 1120 is due Sept. 15 with an April 15 extension.

o   After Dec. 31, 2015, the due date for this form is Oct. 15. The April 15 extension date will not change.

  • For exempt organizations required to file Form 990, the new extension date becomes a single, automatic 6-month extension. This eliminates the need to process the current first 90-day extension.
  • Those filing the Foreign Bank and Financial Accounts Report (FBAR) will have to adhere to a new April 15 due date. An Oct. 15 extension date was also established. This report was previously due on June 30.
  • All W-2 and certain 1099-MISC forms are now due to the IRS/SSA no later than Jan. 31, which is the same day they are due to the taxpayer. All other Forms 1099 are due Feb. 28 or, if filed electronically, March 31. This is a change from the Feb. 28 due date (and March 31 date if filed electronically) for all W-2 and 1099 forms that was previously enforced.

For all the changes outlined above, there are a few rules that will remain unchanged. Below are four due dates that will not change in 2017.

  • Form 1120S – These forms are due on March 15 with a six-month extension from the due date.
  • Form 1040 – The individual tax form will continue to be due on April 15 with an Oct. 15 extension date.
  • The due date for Form 5500, concerning employee benefit plans, will not change as a federal law that was enacted in December 2015 effectively repealed a previously enacted extension. These forms are due on July 31 with an Oct. 15 extension due date.
  • Form 3520-A for foreign trusts with a U.S. owner will not be changing. These forms will continue to be due on March 15 with a Sept. 15 extension due date.

Check with your tax advisor to find out if you will be ready to comply with these changes and to ask any tax planning questions you might have. Believe it or not, tax season is closer than you think. Be a proactive business owner. With enough lead time, you can implement a tax savings strategy capable of delivering amazing results. Email Rea & Associates to learn more.

By Lisa Beamer, CPA (New Philadelphia office)

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Looking to Start a Business? Do It the Right Way

Monday, June 20th, 2016
Starting new Ohio Business - Ohio CPA Firm

Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice found in this post and you’ll be well on your way to a successful start.

Starting your own business and becoming a small business owner is part of many Americans’ dreams. For some though, it can become a nightmare. There are definitely some right ways and wrong ways to approach starting your own business. Over my tenure as an experienced business advisor, I have seen plenty of heartache and additional expense along the way. Here are some of Do’s and Don’ts to consider if you want to start your own business:

Read Also: Dream Big: Considerations For The Aspiring Business Owner

  • Do: Go simple – Unless someone besides your spouse will own the business with you, you don’t need anything other than a simple limited liability company. It offers you liability protection while minimizing your tax filing requirements. Being the sole owner and having this sort of entity allows you to file you business’s activity on a Schedule C on your Form 1040. Until the business grows and is successful, this entity type will likely be sufficient for your small start-up.
  • Don’t: Go cheap – Small business owners tend to think they can or should do everything themselves. A lot of sweat equity goes into starting a new business, but be smart and humble enough to know the difference between what you can do and what you should do. It’s OK to ask for help!
  • Do: Involve professionals – This is an area where new business owners tend to want to go cheap. No one likes paying attorneys and folks don’t know they need a tax professional sometimes until it’s too late. Getting set up with the proper legal documents is a critical first step, and it’s one that new business owners like to try to tackle on their own. I know from experience that a good attorney is worth the expense. Don’t know who to ask? Start asking other established business owners who they use.
  • Don’t: Do payroll yourself (unless you have experience) – Some of the heftiest penalties the IRS assesses involves payroll taxes. They don’t mess around when it comes to properly assessing and remitting payroll taxes and paying your employees. Even one slip up can set a business back several thousand dollars. The issues continue to compound if they are not properly taken care of, so don’t ignore this extremely important aspect of your business. Unless you have prior experience with payroll or you hire someone with experience, this is an area where you should seek professional help.
  • Do: Consult your local Chamber of Commerce – Chambers of Commerce exist to assist businesses in a multitude of ways. Our local Chamber offers Small Business Counseling classes that are meant for new business owners who are just starting up a business. These classes include counseling, training and assistance for start-up businesses. This local resource can be invaluable if you choose to utilize it.

Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice above and you’ll be well on your way to a successful start.

Around the same time you start your business, you’ll also want to consider your business’s growth strategy. Lee Beall, CPA, CEO at Rea & Associates, covered this topic in a podcast episode on unsuitable on Rea Radio. Check it out to learn what you need to do to establish or strengthen your business’s strategic plan.

By Lesley Mast, CPA, MAcc – Taxation (Wooster office)

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