Tax News Blog

Tax Deadline for Businesses You Need To Know

Posted by admin on February 22, 2024
Last modified: February 22, 2024

Tax Deadlines for Businesses such as C Corps, S Corps, and Partnerships, including LLCs.

When it comes to tax filing deadlines for business partnerships (such as multi-member LLCs) and S-Corps, the usual timeframe is by March 15 unless they follow a fiscal year. You can extend this deadline by six months to September 15 (or five months after the initial due date) by submitting Form 7004.

As of the fifteenth day of March 2024, it is the deadline for certain types of businesses to submit their taxes. Entities such as partnerships, multi-member LLCs, and S-Corporations must ensure they file either Form 1065 or 1120S by this date if they operate on a calendar year basis.

When operating a business that follows a fiscal year, it is essential to submit your tax return by the 15th day of the third month after the conclusion of your tax year. For instance, if your business adheres to a tax year from April 1 to March 31, the tax filing deadline for your business tax return would be June 15 instead of March 15.

What Should I Do if I Miss the Tax Filing Deadline for Businesses?

In the event that a tax deadline is overlooked, there are various options available to rectify the situation. The appropriate course of action is contingent upon the specific missed deadline and your financial circumstances, such as owing taxes or expecting a refund.

What Will Happen If I Miss the Tax Filing Deadline and Owe Taxes?

If you miss the tax filing deadline and have tax obligations, it is important to file your tax return promptly. Delaying the filing will result in accumulating interest, penalties for failure to file, and penalties for failure to pay until you settle the balance due by filing the return.

Did you Miss The Estimated Tax Payment Deadline?

If you fail to meet a tax deadline for making an estimated tax payment, it is important to rectify the situation promptly. The consequences, in terms of penalties and interest imposed by the IRS, are contingent upon the amount owed and the duration of the delay. Nonetheless, mitigating the repercussions can be achieved by remitting your payment as soon as possible.

The Best Way to File My Tax Return for Businesses

For those in search of the quickest method to submit their tax return, the most efficient and precise way is through electronic filing. Opting for E-Filing with PriorTax ensures speed and enhances security compared to traditional paper filing methods.

With the convenience of electronically filing your tax return, there’s no need to fret about the document going missing in the postal system or reaching the IRS after the deadline. Instant confirmation of the IRS receiving and initiating the processing of your return gives you peace of mind.

How Much Time Do I Have To File My Back Taxes from the Missing Tax Filing Deadline and Owen a Tax Refund?

In the event that you fail to meet the tax filing deadline and have a refund due to you, there are important considerations. If you have overpaid for the tax year 2023, there are usually no repercussions for submitting your tax return late. Nevertheless, it is advisable to submit your return at the earliest opportunity.

Typically, there is a three-year window from the tax return deadline for claiming a tax refund. This rule applies to the 2023 tax returns, with the deadline set in 2026. If left unclaimed beyond this period, the tax refunds usually revert to the ownership of the U.S. Treasury.

What if I Made Mistakes and Need to Fix My Taxes?

In the event that an error is discovered and a tax re-filing or fixing your taxes becomes necessary, it’s important not to panic. Mistakes are a common occurrence in the process of tax filing. Should you realize that certain income was omitted or a specific tax credit was not claimed after submitting your tax return, there is no need to redo the entire process. Instead, you can file an amendment using Form 1040-X, ensuring that you provide copies of any forms or schedules that require modification or were initially left out of your original submission.

When it comes to rectifying errors on your tax return, IRS Form 1040-X plays a crucial role. Assisting you in navigating the amendment process, the experts at PreTax can guide you through the necessary steps to ensure your tax return is accurate.

To prevent any setbacks, it is essential to submit Form 1040-X only after your initial Form 1040 has been approved. If you seek to claim a tax credit or refund from a past year, it is imperative to file within three years of submitting your original return or within two years of paying the tax, depending on the later date.

Updates on Student Debt Forgiveness: February 2024

Posted by admin on February 22, 2024
Last modified: February 22, 2024

The Biden Administration is Forgiving $1.2 billion in Student Debt Forgiveness for 153,000 Borrowers. 

On the 19th of January 2024, a significant announcement was made regarding an extra $4.9 billion allocated for student debt forgiveness and relief. This relief is specifically for 73,600 individuals, including teachers, social workers, firefighters, and nurses, who are eligible for the Public Service Loan Forgiveness program.

In a recent announcement, the administration led by President Biden revealed plans to forgive $1.2 billion in student debt for 153,000 borrowers. Individuals whose loans are set to be forgiven can expect to receive a personal email notification from the President himself within the day, as per the Department of Education.

In response to the Supreme Court’s ruling against the Biden administration’s proposal for widespread student loan forgiveness, the White House has introduced a new initiative to tackle the nation’s massive $1.77 trillion student debt burden. This debt relief program aims to support millions of borrowers by allowing them to eliminate up to $20,000 each in student debt.

In its most recent announcement, the Biden administration confirmed that they have given the green light for loan forgiveness to almost 3.9 million borrowers. Among them are individuals who have been diligently paying off their debts over the span of many years. Specifically, the latest batch of debt relief, which benefits 153,000 borrowers, is allocated to those participating in the Saving on a Valuable Education (SAVE) repayment program and have completed a minimum of a decade’s worth of payments.

student debt forgiveness

Who Qualifies for February 2024 Student Debt Forgiveness?

According to a recent Biden administration announcement, 153,000 borrowers under the SAVE program have been deemed eligible for certain benefits. As confirmed by the Education Department, these individuals have fulfilled the criteria of being part of repayment schemes for a minimum of a decade and having initially borrowed $12,000 or fewer for their college education.

Upon surpassing the borrowing threshold of $12,000, the department clarified that each subsequent $1,000 loaned entitles the borrower to forgiveness after another year of timely payments.

What Do You Need To Do?

As per the Education Department, individuals who qualify for loan forgiveness will soon receive an email notification from the President. No additional steps are required from recipients, as loan servicers will handle the forgiveness process promptly. Following the official statement, borrowers can expect to witness their loans being forgiven directly in their accounts within the next few days.

What Is The SAVE Student Debt Forgiveness Plan?

Introducing a new initiative called the EASE program, a modern income-driven repayment solution launched under the guidance of the current administration. EASE aims to alleviate financial strain by adjusting a borrower’s monthly payments based on their income, offering relief from excessive debt accumulation. This innovative program addresses issues that existed in previous IDR programs, preventing interest from escalating on borrowers’ debts.

Participants in the SAVE program can qualify for loan forgiveness after either 20 years or 25 years of making repayments. However, the White House has introduced a more expedited 10-year forgiveness plan specifically for individuals with lower loan balances.

How Many People Are Enrolled in SAVE Student Debt Forgiveness Plan?

As of Wednesday, the Education Department reported that 7.5 million individuals are registered in SAVE, with approximately 4.3 million not making monthly payments.

Can You File a Tax Refund on a Weekend?

Posted by admin on February 15, 2024
Last modified: February 16, 2024

Is Weekend Tax Filing Possible? YES.

On weekends, taxpayers can anticipate the processing of their tax refunds by PriorTax and our dedicated tax professional, although they should still expect the weekend tax refunds to be processed within the typical operational timeline.

The policies of the company or institution issuing the refund will determine the extent to which refunds differ. A noteworthy observation is that numerous refunds, particularly those processed through automated electronic means, can be accommodated even during weekends.

In regards to the processing times of tax refunds, certain refunds might be affected by the operational schedule of banks and financial institutions, as they may not handle transactions during weekends. To ensure accurate details regarding refund processing times, it is advisable to reach out directly to the company or institution from which you are anticipating a tax refund from weekend tax filing.

Since the question needs more specific details, let’s assume the scenario involves receiving a refund on a bank card or credit card after returning an item on a Saturday morning. Upon returning the item and having it scanned by the store, the refund process is initiated promptly.

weekend tax

At the onset, a contractual agreement is established to ensure the provision of a refund. 

Suppose an item necessitates shipment back, analogous to the tax return process implemented. In that case, the timing of the tax refund processing varies depending on the status of one’s account and the nature of the item itself. It may be imperative to wait until the designated party physically receives the item before the tax refund can be effectively initiated. Remarkably, the registration of refunds transpires promptly once the item is scanned; nevertheless, in certain instances, the dispersion of refunds might be deferred until the conclusion of the business day, coinciding with the closure of operations.

It is doubtful that you will receive it on the weekend. The processing time for both banks and credit card companies may take several days. This is due to the multi-step verification process required to ensure the transaction is not fraudulent. The electronic payment first needs to be verified and approved by the store. It needs to be reviewed and approved by the corporate office if applicable, and finally, it has to be authorized by the financial institution before the funds are disbursed.

After transmitting the funds, they forward them to the appropriate institution responsible for verifying the presence of the funds in the originating account. To ensure the validity of the funds, all the transactions made throughout the day undergo processing before your institution finally deposits the funds into your account. Due to this meticulous process, it occasionally takes a span of two or three days.

In regards to the weekend tax filing, it is ultimately up to your particular establishment. Although certain banks, credit unions, and credit card customer service may have limited weekend hours, their operations are not at full capacity with all departments functioning. As a result, services related to transaction confirmations and funds availability are typically unavailable.

If the information gets processed partially before the weekend, there is a chance you will come across a pending status. However, if the information is not processed even in part, no notification will be displayed. Although some institutions can operate at full capacity throughout the entire week, the majority of them do not. Consequently, the funds will remain on hold until Monday for further processing unless they fall on a holiday.

Accurate Tax Filing for Maximum Tax Refund

Posted by admin on February 15, 2024
Last modified: February 16, 2024

Accurate Tax Filing for Maximum Tax Refund for Past Tax affecting the Current Tax Year

Taking a second look at your previous tax returns may lead to a pleasant surprise of a larger tax refund. Whether you filed your taxes independently or with a dedicated Tax Professional for the past three years, PriorTax is here to meticulously assess those past returns and guarantee that no potential tax deductions or tax credits are overlooked for accurate tax filing

How to Find Money Others Miss.

In past tax years, it’s possible that you may have missed out on claiming all the tax credits or tax deductions that you were eligible for, which includes

accurate tax

Missed: Education Tax Credits

As a student or a parent of a student, our primary goal is to ensure that you are making the most out of the benefits provided by the American Opportunity Tax Credit, the Lifetime Learning Tax Credit, and any available tuition tax deductions.

By providing education tax credits, the burden of higher education costs is eased as eligible students and their households see a reduction in their tax obligations. In certain situations, taxpayers may even be eligible for a tax refund.

American Opportunity Tax Credit

With the enactment of the Protecting Americans from Tax Hikes (PATH) Act of 2015, the American Opportunity Tax Credit (AOTC) was solidified as a lasting provision. This tax credit builds upon the foundation set by the Hope Credit, aiming to alleviate the financial burden of education and make college accessible to individuals from lower-income backgrounds.

Lifetime Learning Tax Credit

The Lifetime Learning Credit (LLC) offers a valuable opportunity to non-degree-seeking students throughout their post-secondary education. This credit allows workers to enhance their job skills, ultimately leading to higher earning potential. Unlike the AOTC, the LLC focuses explicitly on reducing income tax for eligible individuals, making it an ideal option for those with tax obligations.

The list of acceptable expenses that qualify for either the Lifetime Learning Tax Credit or the American Opportunity Tax Credit is extensive.

– Tuition After deducting tax-free contributions like scholarships, fellowships, Pell grants, veterans assistance, and employer assistance, the remaining amount of tuition is determined.

– Student fees and expenses required for enrollment

– Books, course-related materials and supplies if it is required to enroll or attend the shcool

– Education such as games, sports, and hobbies or non-credit programs and courses that directly help to improve skills for jobs.

Missed: Inaccurate Tax Filing Status

When it comes to maximizing your tax benefits, choosing the right filing status is crucial. By selecting the optimal filing status, individuals and families can take advantage of various tax credits and deductions.

According to the IRS (Internal Revenue Service), it is crucial to note that accuracy is not always guaranteed. Ensuring that your tax return is correct is essential, as any discrepancies could result in additional taxes, interest payments, or even penalties.

In the event that you have provided inaccurate information on your original return, it is advisable to make amendments. This includes any errors made regarding filing status, dependents, total income, deductions or credits. However, it is important to note that amendments are not necessary for math errors, as the IRS will rectify those themselves.

When it comes to accurate tax filing, the IRS highly recommends that married couples take advantage of the benefits of filing joint tax returns. By choosing to file together, couples can benefit from various tax breaks offered by the IRS. However, there are rare occasions when it may be more advantageous for married couples to opt for separate tax returns.

Missed: Overlooked Earned Income Tax Credit

Working families can receive thousands of additional dollars through the Earned Income Tax Credit (EITC). Factors including income, marital status, and the size of the family determine eligibility for this credit.

Get in touch with a PriorTax dedicated Tax Professional to find all issues for accurate tax filing this year and make tax amendments from past tax years for maximum tax returns.

Get Caught Up on Filing Back Taxes or Past Taxes.

Posted by admin on February 8, 2024
Last modified: February 17, 2024

When it comes to getting up to date on your taxes, is it advisable to file back taxes? It is possible that it is still within your reach to file a tax return for a previous year in order to settle your outstanding balance or retrieve any refunds owed to you. Discover more about why one might consider filing back taxes and the steps involved in initiating this procedure.

Should you File Past Taxes or File Back Taxes?

By submitting past-due tax returns, you have the potential to achieve various benefits. These advantages include the ability to request a refund, avoid penalties and interest associated with late filing and payment, obtain tax return documentation for loan applications, and fulfill the necessary requirements to pay Social Security taxes and qualify for benefits.

Get in touch with a free Dedicated Tax Professional to walk you through filing back taxes from start to finish to avoid any additional penalties.

1. Claim a Refund

Filing a previous tax return can serve the practical purpose of uncovering potential tax refunds owed by the IRS. People often have their federal income taxes deducted from their paychecks, but an excessive amount is withheld occasionally. By submitting a tax return, you may be eligible for a refund that boosts your bank balance.

2. Stop Payment Penalties and Interest from Past Tax Filing

To prevent or reduce penalties, submitting your tax return before the deadline is crucial, regardless of your ability to pay the amount owed. Please file to avoid an additional 5% charge for each month your return is overdue for up to a maximum of five months. Please note that there may be minimum penalty thresholds in place.

In the unfortunate event that you cannot pay your taxes owed on time, the IRS imposes an additional penalty. Should you dutifully file your taxes by the deadline yet find yourself unable to pay the total amount owed, a charge of 0.5% will be applied to the unpaid tax for each month (or part thereof)

Until your outstanding balance is completely settled or the penalty reaches a maximum of 25% of your taxes, the accumulation of these fees will persist. Additionally, the IRS imposes interest on unpaid taxes. Unlike penalties, interest continues to accrue even when the failure to tax file and failure to pay penalties from it.

back tax

3. Prepare Tax Returns When Applynig for a Loan

When seeking certain types of loans, like mortgages or business loans, it is essential to provide documentation of your income during the approval process. To streamline the process, ensure your tax returns are filed before making a loan application.

4. Pay Social Security Taxes for Tax Benefit Qualification

Entrepreneurs who work for themselves are required to fulfill their Social Security and Medicare obligations by submitting their individual tax returns. Through this process, you not only declare your earnings but also become eligible for future Social Security retirement, disability benefits, and Medicare assistance.

How Late Is Too Late?

The IRS highly recommends that individuals file any past-due tax returns for any years that still need to be filed. Generally, the IRS expects taxpayers to file their last six years of tax returns in order to maintain a good standing.

Regrettably, there exists a restriction on the length of time in which one can file a tax return to seek tax refunds and credits. The Internal Revenue Service (IRS) enforces a policy that solely permits the claiming of refunds and credits within a three-year timeframe, counting from the initial due date of the tax return.

You must submit your tax return within three years of the deadline to avoid forfeiting a potential tax refund. This means you will no longer be eligible to claim advantageous tax credits or any extra funds withheld from your salary.

Summary

Filing back taxes for previous years is a possibility that should not be overlooked. However, it is important to note that the IRS typically deems individuals compliant if they have filed their tax returns for the last six years.

In accordance with the stipulations set forth by the IRS, individuals are permitted to claim refunds and tax credits solely within a three-year timeframe from the original due date of their tax return.

How To Get Caught Up on Late Taxes

Posted by admin on February 8, 2024
Last modified: February 12, 2024

Filing late tax returns for past years may seem daunting and impossible, but following a few simple steps can be accomplished with relative ease.

1. Your Income and Expense information

Commence the information-gathering process by assembling all pertinent data from the specific tax year you intend to file a tax return. Consolidate your W-2s, 1099s, and any documentation pertaining to potential tax deductions or tax credits that you may be eligible for. Verify the validity of the tax forms obtained to ensure that you select the appropriate ones for the tax return you are preparing to submit.

2. Request Any Missing Late Tax Documents From the IRS

When it comes to obtaining tax documents from the IRS, some people may need help locating records from previous years. However, a convenient solution is offered by the IRS: a form that allows you to request your tax information for a specific year.

If you are looking for a way to access your tax return information, regardless of whether you have filed your taxes or not, Form 4506-T is the perfect solution for you.

Regarding tax filing, it is important to note that the IRS will provide the information it has on file, which includes details found on various forms like W-2s, 1099s, and 1098s. However, it should be noted that the IRS may need to possess information about potential deductions and credits that you may be eligible for.

late tax

3. Complete and E-file your Late Tax Return

Ensure that you efficiently submit your tax return by completing and filing the necessary paperwork. It is crucial to use the tax forms that correspond to the year in which you are submitting your taxes; for example, if you are filing for the year 2020, make sure to use the appropriate 2020 tax return forms. If you are filing late taxes within the past 3 years, you will likely E-file your back taxes with PriorTax. Our dedicated Tax Professional will file your back taxes with you from start to finish. Also the IRS website offers these essential documents for easy access. Taking your time and exercising patience are vital aspects of completing a tax return manually.

When it comes to completing a tax return manually, having patience is crucial. Fortunately, individuals can also use PriorTax and their Dedicated Tax Professionals team to file tax returns from previous years for free.

To begin the process, simply choose the specific year for which you wish to file your tax return. Afterward, provide your tax details, and PriorTax will effectively complete the necessary forms on your behalf. Please note that for tax returns from previous years, you will need to print and mail them, but this can be much easier by E-Filing with PriorTax.

When you choose PriorTax’s free Dedicated Tax Professionals, a skilled local expert will be assigned to handle your taxes from start to finish, tailored specifically to your individual circumstances. Alternatively, you can opt for unlimited assistance and guidance from our team of tax experts as you navigate the process of doing your taxes with PriorTax, ensuring a comprehensive and seamless experience from beginning to end.

With the assistance of PriorTax, rest assured that you can confidently file your own late taxes and complete them accurately through our step-by-step guidance. Whether you choose to E-file electronically or by mail, we are committed to ensuring 100% accuracy and securing your maximum refund.

Summary

In case you have outstanding late tax obligations from previous years but still need to submit your tax returns, there is a way to minimize penalties and interest.

When it comes to filing your overdue taxes and making the necessary payments, you can unlock a world of benefits for your future. By ensuring that you have a solid record of your late tax returns, you’ll not only be eligible for Social Security retirement and disability benefits but also open the doors to receiving essential Medicare benefits when you require them.

How to File a 2024 Tax Extension and What are Extended Tax Deadlines

Posted by admin on February 1, 2024
Last modified: February 12, 2024

In 2024, individuals seeking to file a 2024 tax extension and have more time to complete their tax obligations will find this guide invaluable. Discover the process of obtaining an extension and the revised tax filing deadline, which is October 15. that applies to you.

The deadline for paying taxes and filing tax returns for the year 2023 falls on April 15. However, if you require additional time for tax flining, you can request an extension until October 15, 2024, to complete your filing.

It is not uncommon for individuals to require additional time beyond the April deadline. In fact, according to IRS data, approximately 10% to 15% of Americans opt to file a tax extension form each year. By submitting this form to the IRS on tax day, filers are granted an extension of approximately six months to complete their tax filings.

Navigating the intricacies of tax deadlines can be quite perplexing. It’s important to note that while there may be an extension for filing your taxes, the same cannot be said for making your payment. In the case of tax year 2023, with the filing deadline falling in 2024, it was crucial to submit your request for a tax extension by the customary April 15. Failure to do so would have resulted in incurring a penalty.

Here’s what you need to know about federal tax extensions and their deadlines.

2024 tax extension

For 2024, What is as 2024 Tax Extension?

When individuals require additional time to submit their federal personal income tax return, they can request a tax extension from the IRS. This can be done by completing the Tax Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

In contrast to its counterparts, the form for requesting a tax extension is notably concise, requiring only a brief time investment. However, before proceeding, you must furnish key personal details and make an informed projection of your annual tax obligations.

What Does a 2024 Tax Extension Actually Extend?

Are you inquiring about the purpose of a tax extension? Allow me to shed some light. A tax extension grants an extension to the deadline for submitting your fully filled-out 1040 personal tax return while your payment time remains unchanged.

When it comes to filing for an extension with the IRS, it’s important to note that this only pertains to your federal income taxes. However, if you are also liable for state income tax, a separate extension must be filed in that regard. In cases where you don’t have all the necessary information to calculate your owed taxes accurately, it is common practice to make an estimated payment.

This is a method you can utilize to obtain this estimate. Discover the convenience of PriorTax, an online tax filing service like the PriorTax E-File that connects you to a dedicated tax professional free to assisting you. Enter your financial details effortlessly and watch as the intelligent PriorTax E-File estimates your tax obligations effortlessly. With PriorTax, a free dedicated tax professional will assist you in analyzing the figures and generating a realistic estimate.

What Happens If you Don’t File Taxes in 2024?

The dire consequences of not tax filing in time can be significant. To prevent facing a penalty for late filing, it is advisable to request a tax extension. However, it is important to note that you may still incur a failure-to-file penalty if you do not submit your completed return by the extended October deadline.

Before you consider filing for an extension without making a payment, take a moment to reconsider. In the event that you fail to settle at least 90% of your tax obligations by the designated deadline, the IRS has the authority to impose a failure-to-pay penalty, potentially reaching 25% of the total amount owed.

Do I Need to File 2024 Tax Extension?

Is it necessary for me to file a tax extension? The majority of individuals in the United States who require extra time to file their taxes will likely opt for filing an extension.

In the event that you have been directly affected by a natural catastrophe, such as a devastating hurricane or wildfire, you may be eligible for an extension on your tax filing.

In the case where an individual has been living or working abroad during the tax filing deadline, they may be eligible for an automatic extension. This provision applies to several groups, such as military personnel and their families, and can grant a filing extension of two to six months.

In case you fall under certain criteria, such as being a qualifying member of the military, there is a possibility for you to qualify for an extension automatically. In addition to extensions provided for individuals living overseas, those in combat zones or hospitalized due to injury may also be eligible for automatic extensions.

When individuals anticipate receiving a refund, they often find that the IRS extends more leniency towards them if they do not request an extension. By failing to meet the April deadline, they can avoid penalties associated with the failure to file a return. Nonetheless, taxpayers need to be aware that their entire refund can be forfeited if they fail to submit a completed tax return within three years of the initial due date.

The 2024 E-File is Now Open. File Early with our Free Dedicated Tax Professional

Posted by admin on February 1, 2024
Last modified: February 1, 2024

The commencement of the 2024 tax filing season was marked by the Internal Revenue Service (IRS) on January 29, as they began accepting and processing the 2024 Efile for 2023 tax returns. It is a well-known fact that many taxpayers choose to postpone filing their taxes until the eleventh hour. Nevertheless, it begs the question: why delay such an important task?

When it comes to improving your financial situation, few things make as much of an impact as your tax refund. Last year, the IRS reported that around 65% of tax filers received a refund, an average amount exceeding $3,000. To ensure you receive your refund promptly, filing your tax return as soon as possible is advisable. Take advantage of PriorTax’s early opening to Efile both your current and past year taxes, maximizing your potential refund.

Are you looking for some motivation to Efile your taxes early? Be sure to do it before the last minute of the April 15, 2024, tax deadline. Instead, please take advantage of these four compelling reasons to start working on your taxes today and electronically submit your 2023 tax return with the assistance of our experienced tax expert, all at no cost to you.

2024 efile
2024 efile

1. Begin Your 2024 Efile for 2023 Tax Refund Today

Filing your taxes early and getting your refund sooner can be a smart financial move, especially considering the impact that last year’s events and the current year can have on your finances.

According to the Internal Revenue Service (IRS), taxpayers who file their taxes electronically and opt for direct deposit can expect to receive their tax refunds within 21 days or less, provided there are no complications with their tax return. Additionally, the potential for larger refunds may arise due to the various tax deductions and credits associated with moves made during the year.

2. Filing online for 2024 EFile is good, but with our Dedicated Tax Professional is Better

Achieving a seamless and precise tax filing experience with PriorTax E-File has always been challenging. By conveniently assembling your tax documents, you can gain access to an interactive platform where you will be prompted to provide essential information about yourself, ensuring that you receive the highest possible tax refund. With PriorTax diligently scouring through an extensive range of nearly 400 tax deductions and credits, you can rest assured knowing that you will receive every dollar you rightfully deserve, thanks to the accuracy of your answers.

Instead of going elsewhere to handle your taxes, there is no need when you have the opportunity to receive comprehensive guidance or have your taxes completed by our dedicated tax professional, all free of charge.

3. PriorTax Dedicated Tax Professional Will Do your Taxes from Start to Finish

When it comes to handling your taxes, there is an option to seek assistance from a knowledgeable tax expert. By connecting with a PriorTax free tax expert, your 2024 tax filing process can be efficiently completed within a short timeframe. Whether it be a full day or even as quick as 30 minutes, your taxes will be taken care of from beginning to end.

4. It’s Time to Find your Dedicated Tax Professional

Even if you find yourself in debt to the IRS, there is a compelling incentive to prioritize the early filing of your tax return. By submitting your return sooner rather than later, you are granted the luxury of delaying payment of any outstanding taxes until the mid-April filing deadline.

By taking the proactive step of starting your tax preparations ahead of time, you will have ample opportunity to strategize on how best to fulfill your financial obligations or explore alternative solutions if you owe a balance. Additionally, an appealing option to consider is contributing towards your Individual Retirement Account (IRA) for the year 2023 before the tax deadline on April 15, 2024.

When Are 2024 Business Tax Filing Due?

Posted by admin on January 25, 2024
Last modified: January 25, 2024

As you embark on your financial journey in 2024, staying vigilant and informed about various deadlines and responsibilities, such as tax filing and maximizing tax deductions, is crucial when business tax filing.

  • Jan. 16, 2024.: Q4 2023 Estimated Tax Payments Due
  • Mar. 15, 2024.: S Corp. and Partnership tax returns due for the tax year 2023
  • Apr. 15, 2024.: Last day for making 2023 contributions to IRAs and HSAs
  • Apr. 15, 2024.: Sole proprietor and C Corp. tax returns due. Q1 2024 estimated taxes are due.
  • June. 17, 2024.: Q2 2024 estimated taxes due
  • July. 31, 2024.: Tax Form 5500 – 401(k) Retirement Plan Filing deadline
  • Sept. 16, 2024.: Extended calendar-year for S-Corp. and Partnership and  tax returns due for 2023. Q3 2024 estimated tax payments due.
  • Oct. 15, 2024.: Extended sole proprietorship and C Corp. tax returns due. Tax Form 5500 – 401(k) Retirement Plan Extended Filing deadline
  • Dec. 16, 2023.: Q4 2024 estimated tax due for C Corp.
  • Jan. 15, 2025.: Q4 2024 estimated tax due for individuals tax payers
  • Updates and Changes for Business Tax Filing in 2024

As the landscape of tax credits and deductions evolves, it is crucial for both seasoned entrepreneurs and those embarking on a new business venture to stay informed. Familiarizing oneself with the latest updates is essential for accurately filing taxes and maximizing potential benefits before the 2024 business tax deadline.

To make informed decisions regarding your business tax filing in 2024, consult with our free and dedicated tax professionals who will guide you from start to finish for maximum tax refund.

2024 Business Tax Filing

What’s New on 2024 Business Tax Return Filing

New tax regulations are constantly being introduced and updated. As we prepare for the 2023 tax year, it’s important to take note of the key changes that will affect your return. These changes encompass a range of areas, including business meals, expanded credits for small employers’ retirement plans, tax incentives for purchasing clean vehicles, credit transferability, adjustments for inflation, the standard mileage rate for business driving, and the small employer’s health insurance credit.

Business Meals Tax Deduction

Starting in the year 2022, the full tax deductibility of business meals was implemented. However, in 2023, only half of the cost can be tax deducted.

More Tax Credits for Small Company Retirement Plans.

Innovation has taken hold in the realm of financial planning as a plan’s origins have broadened. Moreover, a fresh credit has emerged, focusing on specific employer contributions as an alternative to the traditional deduction.

Tax Credits for Buying New Cars.

The world of tax credits offers various benefits to those interested in purchasing plug-in electric and fuel-cell vehicles. These incentives include the new clean vehicle credit, previously owned clean vehicle credit, and the commercial clean vehicle credit. Each of these credits has its own unique set of eligibility rules and credit limits.

Tax Credit Transferability.

The opportunity to exchange green energy tax credits for cash is an enticing possibility. Take, for instance, the alternative fuel refueling property credit case. This tax credit, designed for installing charging stations, can be transformed into immediate cash through the sale to an interested buyer.

Adjustments for Inflation in 2024 Business Tax Return Filing

Every year, the IRS makes numerous adjustments to various tax items to accommodate inflation. These adjustments significantly impact individuals’ tax brackets, specifically affecting the amount pass-through entity owners must pay on their share of business income. Additionally, cost-of-living adjustments (COLAs) have an influence on several other aspects relevant to businesses. These include the standard mileage rate for business driving, the small employer’s health insurance credit, the gross receipts test, the Sec. 179 tax deductions (first-year expensing), the limitation on losses for non-corporate taxpayers, and the qualified business income (QBI) tax deduction.

Standard Mileage Rate from Driving for Business

Regarding business driving, the standard mileage rate plays a crucial role. It is worth noting that if one doesn’t deduct the actual expenses, the IRS-set rate for the year 2023 stands at 67¢ per mile.

Small Employer’s Health Insurance Tax credit.

In 2023, the adjusted amount for the Small employer’s health insurance credit, which is partly determined by wages, is now available.

Gross Receipts Test.

The eligibility assessment, commonly known as the gross receipts test, is pivotal in various aspects of a business’s financial operations. It determines the suitability of utilizing the cash method of accounting, the need for inventory accounting, and other specific purposes.

Limitation on Losses for Non-Corporate Taxpayers. 

The current year’s restriction on losses for non-corporate taxpayers has been raised, allowing excess losses to accumulate as part of a net operating loss for utilization in future years.

Qualified Business Income (QBI) Tax Deduction. 

With the start of 2023, a significant increase in the taxable income threshold could limit or prohibit the Qualified Business Income (QBI) deduction.

Sec. 179 Tax Deductions (first-year expenses).

The option of immediately deducting the cost of machinery, equipment, and other eligible property placed in service before the end of 2023 instead of gradually depreciating it is referred to as the Sec. 179 deduction or first-year expense. This tax deduction allows businesses to tax deduct up to the 2023 limit of $1,160,000.

2024 LLC Business Tax Deadline

Posted by admin on January 25, 2024
Last modified: January 25, 2024

Important Tax Dates for LLC Business in 2024

Small business owners often find limited liability companies (LLCs) to be an attractive business structure. One of the primary advantages of an LLC is the liability protection it offers owners against business debts. Additionally, this business entity allows for flexibility in business tax deadline and tax filing and payment methods.

Due to the adaptable nature of Limited Liability Companies (LLCs), they are not bound by a specific tax deadline. Instead, the timing of their tax filing is influenced by several factors.

How Does LLC File Taxes?

LLCs stand out from other business structures due to their state-level creation. When an individual or group establishes an LLC, their state recognizes the business as a corporation. However, the IRS maintains its classification of a sole proprietorship for businesses owned by one person and a partnership for businesses with multiple owners.

In the realm of business entities, both sole proprietorships and partnerships stand as disregarded or pass-through entities. They earned this status due to their unique characteristic of profits passing through to the owners, who report them on their personal tax returns. The essence lies in the fact that these entities do not incur corporate income tax. LLCs, when classified as either of these entities, can reap the advantages of the protective shield offered by corporations against liability while escaping the burden of double taxation.

Unlike sole proprietorships and partnerships, LLCs are exempt from the burdensome tax filing process. Additionally, they can choose between being classified as an S corporation or a C corporation.

The optimal decision for you is contingent upon various factors. For instance, opting to establish a corporation can lead to financial savings in terms of self-employment taxes but necessitates more rigorous reporting.

If you need clarification on the appropriate filing status for your LLC, seeking the guidance of a CPA or tax expert can help you navigate the decision-making process effectively. By subscribing to a Bench premium membership, you gain unlimited and convenient access to consultations with experienced tax professionals who will guide you on every aspect of your situation.

Main Tax Filing Deadlines for Business Taxes

Regarding tax forms, the designated filing date is the 15th day of each month. However, if this day lands on a weekend or holiday, the deadline is pushed forward to the following business day. Rest assured, the IRS has no intention of shortening the time you have to file your taxes.

The timing of your filing date is also influenced by your choice of a non-traditional fiscal year. Typically, companies utilize the calendar year as their fiscal year, concluding their financial statements on December 31. Adopting the calendar year as your fiscal year can offer certain advantages, such as synchronizing your business taxes with your personal taxes.

Choosing a different fiscal year can prove advantageous for businesses that experience seasonal fluctuations in their operations, such as farms and schools. By aligning their tax season with the conclusion of their busiest period, these entities can reap the benefits of this strategic decision.

Depending on how the IRS categorizes your business, the month you file will vary if you do not opt for a different fiscal year. Your LLC has four distinct filing types, each with its specific deadline.

How PriorTax Can Help

Mastering your tax filing starts with being aware of important tax due dates. However, expecting you to dedicate 10,000 hours to acquire this skill is unrealistic.

From the moment you join forces with PriorTax’s knowledgeable and Dedicated Tax Professionals, your tax obligations will be expertly handled from the beginning to the end of the year. Upon finalizing your financial records, we equip you with a comprehensive year-end financial package, including all the necessary guidance to effortlessly complete your tax filing and secure the maximum tax refund available to you.

business tax deadline

LLC Sole Proprietorship Tax Deadline

In the event that one person owns an LLC, the IRS considers it to be a sole proprietorship. As part of the IRS Form 1040, your individual income tax return, you will report your business income on Schedule C. Consequently, your business taxes will be filed simultaneously with your income taxes.

In order to meet the tax requirements for the year 2023, specifically for filings in 2024, limited liability companies (LLCs)

LLC Partnership Tax Deadline

When multiple individuals own an LLC, the IRS considers it a partnership. As a result, it is necessary to fill out IRS Form 1065, which serves as the partnership return. This form allows you to disclose the business’s income and expenses over the year.

In order to ensure proper financial reporting, the LLC (or the entity that files Form 1065) distributes a document called Schedule K-1 to its shareholders. This document contains all the necessary income and expenses information obtained from the Income and Expenses section of Form 1065. Subsequently, shareholders are responsible for submitting their personal income tax return along with Schedule K-1 and paying any partnership taxes owed.

To comply with the requirements for 2024, it is important for limited liability companies (LLCs) operating as partnerships to submit their Form 1065 by March 15. However, if an extension is granted, the deadline for filing is extended until September 15.

S Corporation Tax Deadline

When your LLC successfully submits Tax Form 2553 within the specified timeframe for the fiscal year you are currently filing; the IRS recognizes your entity as an S corporation. As pass-through entities, S corporations require shareholders to report the business’s profits or losses on their personal income tax return.

When reporting your business’s income and expenses, completing IRS Form 1120S is a must. Just like partnerships, Form 1120S requires the completion of Schedule K-1, which is used to report the income share of each shareholder.

In order to meet the tax obligations for the year 2024, it is necessary for LLCs operating as S corporations to complete and file Form 1120S by March 15. However, if an extension is granted, the deadline for filing is extended to September 15.

C Corporation Tax Deadline

When your LLC makes the decision to be treated as a corporation by submitting Form 8832 (which we will discuss in further detail later), the IRS will classify your business as a C corporation. When it comes to taxation, businesses often encounter the concept of double taxation. This occurs when the business pays a flat corporate federal income tax, and the various shareholders will be taxed on their earnings when reporting their personal income taxes. This results in a duplication of tax payments, leading to the term “double taxation.”

In the world of corporate tax filing, one cannot escape the clutches of IRS Form 1120. This formidable document serves as the vessel through which C corporations submit their income tax returns. Once the taxable income is calculated, it falls under the jurisdiction of a 21% flat federal corporate income tax rate. But that’s not all – the state corporate income tax adds another layer of complexity, with rates varying between 1% to 12%.

In order to ensure compliance with the tax regulations for 2024, it is imperative for Limited Liability Companies (LLCs) that have chosen to file as C corporations to submit their Form 1120 by April 15. With an extension, the deadline for tax filing is Oct. 15.