As the new calendar year unfolds, business owners must turn their attention to the impending tax season. This entails not only addressing the tax obligations of their own companies but also shouldering responsibilities related to employees' taxes and their filing capabilities. Amidst the potential overwhelm, organizing tasks can simplify the process. To facilitate this, we have compiled a list of imminent deadlines. Adhering to the specified dates on this list should position you favorably to navigate this tax season with relative ease.
However, it's imperative to note that while we aim to cover tax requirements across various locations, consulting with your accountant in the coming weeks is crucial. This personalized conversation will shed light on any specific deadlines pertinent to your business, considering its unique nature and operational context. This proactive approach ensures ample time for gathering and organizing the necessary documentation required for your company's filings.
Commence the process by promptly checking state tax deadlines. While many states align with the IRS's mid-April deadline, variations exist. Understanding the specific deadline for state taxes ensures a well-prepared approach this spring. For businesses with remote workers in different states, discussions with your accountant are essential to determine filing requirements and deadlines for each relevant state.
Time is of the essence as you have until the end of January to issue W-2s to employees and 1099s to contractors. Ensuring compliance with reporting non-statutory stock options on W-2s is paramount. Additionally, a notable change for the 2023 tax year mandates reporting and 1099 issuance for contractors with wages exceeding $600.
For businesses incorporated in Delaware, specific deadlines must be addressed by March 1. This includes paying franchise taxes and filing an annual report with the Delaware Division of Corporations. While some registered agents may offer to handle this for a fee, it can be done for free through the Division of Corporation's website. Collaboration with your CPA is advisable, especially if fundraising or share issuance occurred in 2023, as calculating the franchise tax can be intricate.
The tax filing process is bifurcated for federal and state obligations. Many states align their corporate income tax deadlines with the IRS's April 15 date. It's essential to collaborate with your accountant to identify states requiring filings. For businesses incorporated in Delaware, filing corporate income taxes may still be necessary, notwithstanding franchise tax payments.
For federal taxes, calendar-year filers must submit Form 1120 for corporate taxes by April 15, accompanied by payment for any income taxes owed. Initiating discussions with your accountant in February or March is recommended to ensure a timely and accurate filing, potentially unlocking tax savings like the R&D tax credit, which could significantly reduce your IRS bill.
In case the middle of April is looming, filing for an extension via Form 7004 can provide a six-month reprieve for your filing. Crucially, this extension pertains to filing only, and tax payments are still due by April 15. Any payments made after this date may incur late fees and interest, emphasizing the importance of meeting the initial tax payment deadline.
In conclusion, this overview aims to demystify the impending tax season. For additional guidance to navigate it smoothly, refer to our tips for prepping your books and tax planning insights from the close of 2023. As the 2023 tax filing season approaches, initiate a conversation with our team of tech startup tax specialists to ensure a well-prepared and seamless filing experience.
We are offering free 1 Month Basic Bookkeeping to all new customers so you can experience Accracy's seemless and professional services.
These are the best states to incorporate your business in.
Here's our comprehensive guidance on setting yourself up for full loan forgiveness under the PPP, with the latest guidance from the U.S. Treasury.
Historically, minority-owned businesses have had a harder time accessing business loans. These nine loan programs seek to address that disparity.
