Category: Taxes for Prior Years

With PriorTax, it’s never too late to file taxes for prior years. In fact, you can prepare your tax returns with us all the way back to the 2005 financial year. Our tax team specializes in prior year tax returns and can help prepare them as quick as your current return. Most taxpayers are not aware that they can still claim refunds for their late tax returns. You can claim refunds three years past the deadline date.

If you have other questions about your prior year taxes, leave a comment on our blog and our team will give you the answers you need!

Archive for the ‘Taxes for Prior Years’ Category

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.

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.

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.

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.

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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.

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.

Filing Your Business Tax Return in 2024

Posted by admin on January 18, 2024
Last modified: January 18, 2024

Every year, business owners face the dreaded task of filing business tax returns. This includes filing federal, state, and local tax returns. Evading this responsibility is not an option. The key to successfully managing this daunting task is to begin early and thoroughly prepare.

When Are Business Tax Returns Due for 2023?

It is important to be mindful of the due date for submitting your income tax returns. Failure to adhere to the deadline could result in penalties for late filing, which unfortunately cannot be deducted from your taxes. Provided below are the federal income tax return deadlines applicable for the tax year 2023.

For Business Entities

In order to meet their tax obligations, partnerships, S corporations, and calendar-year C corporations need to file their income tax returns within specific deadlines. For partnerships and S corporations reporting on a calendar year basis, the deadline for filing their 2023 income tax returns is March 15, 2024.

When it comes to tax filing, limited liability companies (LLCs) with multiple members typically choose to file partnership returns. However, LLCs that have opted to be taxed as corporations have a different filing requirement. On the other hand, for one-member LLCs, their business tax return is filed together with the owner’s individual tax return.

For Business Owners

In order for business owners to fulfill their obligations, they must submit their personal income tax returns for the tax year 2023 by April 15, 2024.

When it comes to filing business tax returns, it’s important to understand your state’s specific requirements. These requirements can vary from state to state, so it’s crucial to be aware of them in order to avoid any potential issues. In fact, some states have filing deadlines that coincide with the deadlines for federal income tax returns.

When it comes to businesses conducting online transactions, it is crucial to pay close attention to the filing requirements. Certain states perceive this as a significant link (“nexus”) to them, consequently necessitating state tax return submission.

If a federal disaster area affects your business or personal income tax return, you might be eligible for an extension on the federal filing deadline. Disaster victims are automatically granted a 60-day filing extension, but the IRS may extend this period for up to one year.

In the case of the devastating Hawaii wildfires that ignited on August 8, 2023, individuals who were impacted and had previously been granted an extension for their 2022 income tax returns were given an extended deadline, until February 15, 2024, to submit their filings. Additional details regarding the filing extensions available for those affected by natural disasters can be found on the official IRS website.

business tax

File a Tax Extension for Business Tax Filing

In the event that the deadline for filing your business tax return cannot be met due to unforeseen circumstances, there is a convenient solution available to you. By simply making a request, a six-month extension can be granted automatically without the need for any explanation.

When businesses and individuals need more time to file their tax returns, they rely on specific IRS forms. For businesses, their go-to form is the IRS Tax Form 7004, also known as the Application for Automatic Extension of time to file certain business income tax returns. IRS Form 4868 is commonly utilized by various individuals, such as sole proprietors, self-employed individuals, and one-member LLCs.

When it comes to filing tax returns, many people mistakenly believe that an extension grants them additional time to make their payments. However, it’s important to note that this is not the case. In order to avoid facing late-payment penalties, it is wise to pay the amount you expect to owe as soon as possible.

How To File Business Tax

In the government’s 2022 fiscal year ending on September 30, 2022, a significant majority of business tax returns were submitted electronically as E-File.

There are three excellent reasons for this.

Given the current shortage of IRS personnel and the persistent backlog of paper returns, e-filing remains the most efficient method for processing tax returns promptly.

If business owners choose to report their portion of business income on their individual tax returns, they can optimize the speed of receiving their tax refund by E-File. Moreover, opting for direct deposit can further expedite the process.

In order to promote efficiency and accuracy, tax return preparers who submit over ten information tax returns during the 2024 tax filing season are required to file their returns, with a few exceptions granted electronically.

Small Business Tax Deadlines for 2024

Posted by admin on January 18, 2024
Last modified: January 18, 2024

Unlike the average American who only has to worry about tax deadlines once a year, business owners have a constant burden of filing tax forms regularly. Whether quarterly income taxes or keeping up with payroll taxes, there are always business tax deadlines to meet and obligations to fulfill.

In the upcoming year of 2024, small businesses will face a variety of important business tax deadlines that require their attention. To ensure a smooth process, it is recommended for small business owners to collaborate with a financial advisor who specializes in tax automation solutions.

Small Business Estimated Tax Deadlines

For anyone generating income through self-employment or freelancing, the responsibility of tax filing estimated income taxes is paramount. Often referred to as “quarterlies,” these tax filings are lodged approximately every quarter.

There are multiple reasons why the IRS mandates this. Its primary motive is to maintain a consistent flow of income for the agency. By implementing estimated taxes, the IRS ensures a steady influx of funds throughout the year instead of relying solely on a single annual collection.

With quarterly payments, there is an increased likelihood for businesses and individuals to have readily available funds. It is common for small businesses to neglect setting aside enough money for taxes, causing difficulties for the IRS when collecting a lump sum at the end of the year.

The amount of income tax you owe is calculated based on your income since your previous estimated payment, which is typically made every three months.

Instead of performing an exhaustive evaluation of your income, deductions, and expenses to determine your present tax bracket accurately, there is an alternative option. By applying the tax bracket from the previous year to the income earned in the last quarter, you can make an “estimated” tax payment. The IRS allows this simplified calculation method, making it possible to estimate your tax liability quickly and conveniently.

In 2024, you must prepare the quarterly tax filing on these dates:

  • Q1, Jan. – Mar.: Due Apr. 15, 2024
  • Q2, Apr. – May: Due June 17, 2024
  • Q3, June – Aug.: Due Sept. 16, 2024
  • Q4, Sep. – Dec.: Due Jan. 15, 2025
business tax deadlines

Small Business Income Tax Deadlines

Similar to people, companies are also required to submit their income tax returns annually. The specific due dates for filing these taxes vary depending on your business type. However, adhering to the business tax deadlines for submitting your taxes or applying for an extension is crucial.

  • Partnerships, LLCs and S Corporations Using A Calendar Year: Due Mar. 15, 2024
  • C Corporations and Sole Proprietors Using A Calendar Year: Due Apr. 15, 2024
  • The IRS has scheduled Tax Day for Monday, Apr. 15, 2024.

Please be aware that corporations utilizing a fiscal year system are exempt from these time constraints. If you employ fiscal year accounting, you must submit your tax returns by the 15th day of April following the conclusion of your fiscal year, taking into account any potential holidays or weekends.

There are two important rules to remember regarding tax filing deadlines the IRS sets. Firstly, if you choose to file electronically, your submission will be considered on time as long as you manage to submit your forms by midnight in your local time zone on the day it is due. Secondly, if you opt for hard copy submissions, your forms must be postmarked by the due date to be considered on time.

Small Business Tax Form Deadlines

To successfully run a business, it is essential to maintain regular communication with the IRS. This ensures that both your finances and the financial well-being of your employees are properly accounted for. Although we won’t delve into the exhaustive details of monthly payroll tax filings, it is important to consult the comprehensive tax calendar provided by the IRS for a thorough understanding of the process.

However, the important unique business tax deadlines you need to know are

  • Employees Must Receive W-2 Tax Forms: Jan. 31, 2024
  • Independent Contractors Must Receive 1099 Tax Forms: Jan. 31, 2024
  • Switch Business Election to S-Corporation for 2024 Taxes: Mar. 15, 2024
  • File Business Taxes After An Extension, Partnerships, LLCs, and S Corporations Using A Calendar Year: Sept. 15, 2024
  • File Business Taxes After An Extension, C Corporations and Sole Proprietors Using A Calendar Year: Oct. 15, 2024

It is important to keep in mind a few key factors. Initially, it is crucial to note that the business tax deadline for employed or contracted individuals differs from the majority of deadlines imposed by the IRS. In this situation, the documents must be obtained by Jan. 31, whether in electronic format or as a physical copy.

To begin with, although a tax extension provides an additional half a year to complete your necessary documentation, it remains essential to submit an estimated tax payment either in March or April (depending on the specifics of your organization). Pay an estimated amount considerably lower than your final tax liability to avoid the IRS imposing penalties for underpayment.

Small Business Payroll Tax Deadlines

When running a business that employs people, one responsibility that cannot be overlooked is managing payroll tax filings and payments. You must ensure that your employees’ payroll taxes and income tax withholdings are paid promptly and regularly. The frequency of these payments, whether on a monthly or biweekly basis, will depend on the specific nature of your company.

Apart from fulfilling these obligations, it is imperative to submit a payroll tax form to the IRS consistently. Although a handful of tiny enterprises may accomplish this by submitting Form 944 along with their yearly reports, most businesses will be responsible for their payroll tax filings every quarter through the submission of Form 941.

If the documentation reveals any outstanding taxes that surpass the pre-existing deposits, the corresponding payments will become payable one month after the submission.

These business tax deadlines are:

  • Q1, Jan. – Mar.: Filing Due Mar. 31, 2024; Payment Due Apr. 30, 2024
  • Q2, Apr. – June: Filing Due June. 30, 2024; Payment Due July. 31, 2024
  • Q3, July – Sept.: Filing Due Sept. 30, 2024; Payment Due Oct. 31, 2024
  • Q4, Oct. – Dec.: Filing Due Dec. 31, 2024; Payment Due Jan. 31, 2025

Tips for Small Business Tax Fling

Navigating the small business world inevitably leads to numerous encounters with the IRS. Whether managing payroll taxes or staying on top of estimated quarterly payments, it’s crucial to remain vigilant about your small business tax deadlines to avoid potential penalties or fees.

If you cannot meet certain business tax deadlines, you may find yourself in a position to dismantle your business’s legal structure. To avoid this outcome, consider locating your dedicated tax professional from PriorTax who can effectively handle these business tax deadlines on your behalf.

Start your journey towards a stress-free tax season by finding the free dedicated Tax Professional to assist you with your business taxes and filing needs. From the very beginning to the very end, PriorTax is here to ensure you are matched with the ideal dedicated tax professional, completely free of charge. Reach out now, and let’s start making your tax experience a breeze.

2024 Tax Filing Will Open on January 29

Posted by admin on January 11, 2024
Last modified: January 9, 2024

In a recent announcement, the IRS has declared that the 2023 tax season will commence on Monday, January 29, 2024. Get ahead of the game and e-file your taxes now with PriorTax. By 2024 tax filing early, you can ensure you’ll be among the first to receive your tax refund.

If you are in need of assistance with your taxes, whether you prefer to tackle them independently, seek support throughout the process, or entrust them entirely to a tax specialist, the team at PriorTax is committed to providing expert guidance at no cost to you. Our dedicated Tax Professional aim to ensure you receive the maximum tax refund possible while offering comprehensive support from beginning to end. Individuals received an average tax refund exceeding $3,000 in the previous fiscal year.

2024 Tax Filing

2024 Tax Filing Deadline is April 15 for Most Taxpayers

On April 15, we celebrate Patriots Day, a great significance for our nation. It is a time when we honor and remember the brave patriots who fought for our freedom and independence.  In order to ensure a smooth and timely tax filing process, the we strongly advise the taxpayers to submit their tax returns as early as possible. Maintaining copies of previous tax returns for a minimum of three years is also important. For most taxpayers, the essential deadline to file their individual federal tax returns, settle any outstanding tax liabilities, or seek an extension is Monday, April 15, 2024.

April 15, 2024, marks the final day for individuals to submit their 2023 tax returns. However, residents of Maine and Massachusetts can breathe a sigh of relief as they have an extended deadline until April 17, 2024. This extension is granted in recognition of the significant holidays of Patriot’s Day and Emancipation Day. Furthermore, taxpayers residing in areas that have been declared as federally recognized disaster zones may be eligible for additional time to file their tax returns.

When tax filing your taxes electronically, e-file and direct deposit are the perfect combination for a speedy tax refund. The IRS estimates that approximately 90% of taxpayers will receive their tax refund within 21 days or less as long as there are no complications with their tax return.

Tax refunds are typically processed and issued by the IRS within 21 days, with EITC refunds becoming available starting February 27. However, the timeline for receiving a refund can be influenced by various factors once the IRS receives a tax return. It is important for taxpayers to refrain from depending on a specific refund date, particularly when it comes to significant expenses or bill payments.

Important 2024 Tax Filing Season Dates

Jan. 12: IRS Tax Filing opens

Jan. 16: Due date for 2023 fourth quarter estimated tax payments.

Jan. 26: Earned Income Tax Credit Awareness Day.

Jan. 29: The filing season starts for individual tax returns.

April 15: Due date of filing a tax return or requesting a tax filing extension.

April 17: Due date for Maine and Massachusetts.

Oct. 15: Due date for extension filers.

Finding your dedicated tax professional is the most effective way to track the status of any potentially delayed returns. In some instances, additional review may be necessary, resulting in a longer wait time.