Small Business Tax Prep: 7 Dates You Need to Know Right Now

clock showing 2020 turning to 2021

Don’t you love tax-time? No? Just us?

Not feeling it? We get it. We’re bookkeepers… We know we love tax-time prep, and we know that we may be alone in that sentiment.

Despite the year we’ve had, there is some good tax-time news.

  1. Any stimulus payments you received in 2020 won’t impact your tax refund.
  2. If you received an EIDL advance, it is not taxable.
  3. If you received a PPP loan and used some of the money for qualified business expenses, you can still deduct those expenses as you would have in the past.

And, with all the chaos of 2020, one thing remains true.

“… in this world, nothing can be said to be certain, except death and taxes.” — Benjamin Franklin

Here are the dates you (might) need to know in 2021 to kick 2020 to the curb officially.

January 15, 2021

If you own an LLC (single-member, partnerships, or S-Corp), your last estimated tax payment for 2020 is due on 1/15. If you’re a sole proprietor, you do have an option to wait until the 31st, although, if cash-flow allows, why wait?

According to the IRS, “… sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.” If you did not make quarterly payments in 2020, now is the time to determine if it’s a good idea for 2021. Be sure to discuss this with your CPA or tax preparer. They should give you due-dates and forms to file with your payments.

February 1, 2021

If you have employees, the deadline to file Form W-2 with the IRS is 2/1. Be sure that you send W-2s to your employees by then as well.

Certain payroll providers will provide a secure online portal for your employees to download their W-2s, so you don’t have to mail them. You can also post them on a secure internal site if you produce them yourself. If you work with independent contractors, 2/1 is also the deadline to issue a Form 1099-NEC to those who earned $600 or more from your business last year.

Another Pro-Tip
If tracking down your contractors proves troublesome, we suggest getting W-9s from each one before you begin outsourcing work to them this year.

March 1, 2021

If you paper-file any 1099s, the deadline to file information returns with the IRS is 3/1.

NOTE: If you file electronically, you have until 3/31.

March 15, 2021

S-Corps: Your Form 1120-S is due. Partnerships: Your Form 1065 is due.
Schedule K-1s are also due on 3/15, and each shareholder or partner needs to get one.

April 15, 2021

Sole proprietors and single-member LLCs: Your Form 1040 is due. There are multiple versions (1040, 1040-A, 1040-EZ), and you’ll need to select which form to use based on your business circumstances.

September 15, 2021

S-Corps and Partnerships: If you requested and received an extension to file your return, it’s due on 9/15.

October 15, 2021

Sole Proprietors: If you requested and received an extension to file your return, it’s due on 10/15.

If you owe taxes, you are still obligated to pay by April 15, 2021.

What should you do in November and December?

Depending on how the year goes, that may be the perfect time to look at outsourcing your bookkeeping needs. Having accurate and clean finance and accounting data makes things easier for your tax preparer, which will likely translate to a faster filing turnaround and lower costs.

Thinking you want to do that now, instead of waiting until next year? There’s still time. Contact us today!

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