Tax season is here again, and with it comes a long list of important dates to remember.
When you operate a small business, you have to keep up with every filing deadline. Otherwise, the IRS can enforce some pretty severe penalties. Putting off cleaning out the garage is one thing; procrastinating on your taxes is much more serious. Your time and money are worth too much to be tied up undoing the consequences of simply not getting things done on time.
With that in mind, here is your plan for success. Mark these dates on your calendar for 2021, and imagine what it will feel like to know that you’re on top of things with no need for stress.
(Note: there are changes effective this year between the old 1099-Misc and the new 1099-NEC forms.)
- January 15 – Quarterly estimated taxes for Q4 2020 are due.
- January 31 – 1099-Misc forms need to be delivered to the IRS and to qualified recipients you paid in 2020. Payments requiring a 1099-Misc form:
- Prizes and awards
- Other income payments
- Generally, the cash paid from a notional principal contract to an individual, partnership, or estate
- Any fishing boat proceeds
- Medical and health care payments
- Crop insurance proceeds
- Payments to an attorney
- Section 409A deferrals
- Nonqualified deferred compensation
- February 1 – 1099-NEC forms are due to the IRS and Non-employee Contractors. In general, use 1099-NEC when:
- You made payments of at least $600 to an independent contractor who is not your employee
- You made payments for services rendered during the course of business (to a government agency or non-profit, for example)
- You made payments to an individual, partnership, estate, or corporation
- (Here is a link with details from the IRS on the difference between 1099-Misc and 1099-NEC, but give us a call if you’d like to make sure you’ve filed correctly.)
- March 15 – Corporate income tax returns for S-Corps and Partnerships are due. This is also the deadline for these types of companies to file for a 6-month extension if necessary.
- April 15 – “Income Tax Day” when the following are due:
- Personal, Sole-Proprietorship, LLC, and C-Corp tax returns
- Q1 2021 estimated taxes
- 6-month extension requests for the types of returns listed above
- June 15 – Deadline to pay Q2 2021 estimated taxes
- September 15 – Deadline to pay Q3 2021 estimated taxes. Deadline to file for S-Corps and Partnerships who requested a 6-month extension back in March.
- October 15 – Deadline to file for individuals, Sole-Proprietors, LLCs, and C-Corps who requested a 6-month extension in April.
- January 15 – Q4 2021 estimated taxes due
These dates are for individuals operating businesses on their own or through contractors. If your business has employees, there are additional payroll taxes and deadlines that you are responsible for. Our team can easily help you with that too.
CRS CPA has been helping business owners just like you with all kinds of tax situations for over 40 years. We understand how overwhelming it can be, which is why we do what we do. We want to free you up to focus on growing your business knowing that your taxes are in good hands.
Give us a call today before these deadlines get away!