U.S.A. Small Business Tax Information

by L. Kenway BComm CPB

Bookkeeping and Tax Deadline Reminders

Updated for 2016 / 2017

Click here for current month deadlines


Advertisement




A handy reference for small U.S. home based business owners working from their home office

What You'll Find In This Chat ...

Exhale, sip a cup of tea while you spend the next few minutes browsing this handy reference for small business tax information you need to know. A good place to start would be the IRS moving timelines.

Good To Know Stuff

IRS Interest Rates

U.S. Calendar Deadlines

About IRS Due Dates and Late Charges

From The Bookkeeping Forums

U.S. Self Employment Income
Sole Proprietors and Partnerships

U.S. Employee Payroll Taxes






INDEX - Basic Tax Articles for U.S. Bookkeepers
Click on any image below to go to the article.

This Chat

Small Business Compliance Deadlines

✔ Small Business Tax
Deadlines and Reminders

✔ Interest Rates and More

Chat 2

Self Employment Income

✔ Self Employment Income

✔ Standard Mileage Rates

Chat 3

U.S. Payroll Taxes

✔ Payroll Taxes

✔ 4 Part Series




BOOKKEEPER'S HANDY REFERENCE

Hi. I'm so glad you've come to visit bookkeeping-essentials.com today. :0)

Bookkeeping-essentials.com was designed to be a bookkeeping resource for work from home business owners like YOU. So please, feel free to snoop, peek and poke about. I really hope you like what you find and come back often.

This is The Bookkeeper's Notes on U.S. small business tax information ... everything gathered in one place ... all relevant to YOU.


Once you have looked over the U.S. small business tax information found on this page, I invite you to get a cup of tea, take a few moments to relax ... and discover some of the informal chats on good bookkeeping practices to be found on this site.

Take a tea break with Bookkeeping-Essentials today!

This page will change as I collect more information on small business tax information relating to the sole proprietor in the United States ... so I'm going to apologize in advance for those of you who don't like lots of changes. You can expect for the first while that I will rearrange the information until I get it in a format I like.

I am not a U.S. tax professional. I am a Canadian citizen ... just learning about U.S. small business tax information. I recently took a U.S. online course on basic bookkeeping.

I suggest you always double check my numbers to IRS publications (and with your accountant) as I may not fully understand the topic yet.

If you see an error in the U.S. small business tax information section of this website, I would really appreciate it if you contacted me to let me know. Here's what I have so far.


Notice to Site Visitor

I developed this U.S. small business tax information page as a handy reference for myself. While I do my best to ensure it is accurate and complete, I make it available for your use with the understanding that I cannot be held liable for errors and/or omissions.

Small business tax information is subject to frequent change and should NOT be confused with advice ... so professional advice should be sought prior to acting on any of this information. Please make yourself familiar with my site policies prior to relying on any of the information on this site.





LET'S CHAT ABOUT ...

Tax Compliance and U.S. Bookkeeping

Owning and operating a business in the United States means you have some legal responsibilities. Internal Revenue Service (IRS) requires regular reporting of employment taxes and business taxes. Each state has their own tax related requirements as well. These regulations are often referred to as government compliance requirements.

TaxReceipts.com - Tax Myth #2 – Just File An Extension


Tax compliance returns and payments should be filed on time. Failure to report and remit by due dates leads to costly penalties and interest charges. Filing extensions for sending in your tax return still require you pay your taxes on time ... it does NOT extend your tax payment/deposit due date.

This site provides some U.S. (and Canadian) bookkeeping information you need to know to put more money in your pocket and avoid these charges.


                               good bookkeeping practice
THE BOOKKEEPER'S|TIP    

A Good Tax Compliance Practice

The best way to flush your money down the toilet is to NOT FILE your compliance returns when due. But here's a tip ... even if you can't pay the taxes owing, always file compliance returns by their due dates to avoid pricey penalty charges.

Late filing or failure to file penalties for tax returns are 5% of the tax owing each month to a maximum of 25%.

Interest charges on the balance owing will still apply along with a late payment or a failure to pay penalty of one half of one percent per month to a maximum of 25%.

AICPA has an excellent free tax calculator to help you estimate and understand your federal, state and local taxes.

Small Business Tax Information Source: IRS Publication 17> What if I made a mistake?> Penalties> Civil Penalties




GOOD TO KNOW

What is considered the "official" receipt date at the IRS?

Every sole proprietor needs small business tax information about filing deadlines and due dates ... so you can avoid costly penalty and interest charges. So how does IRS determine their "official" deadline date? Here's what I found.

Business compliance deposits and returns received after the due date will be considered on time if you can prove it was mailed in the U.S. on or before the due date. It must also have been properly addressed with sufficient postage.

Monthly tax deposits of $20,000 or more must be received by IRS on or before the due date.

If the due date falls on a weekend or a federal (not state) public holiday, then you have until the next business day. There are two exceptions to this rule for excise taxes:

"For deposits of regular method taxes, if the due date is a Saturday, Sunday, or legal holiday, the due date is the immediately preceding day that is not a Saturday, Sunday, or legal holiday.

Under the special September deposit rules, if the due date falls on a Saturday, the deposit is due on the preceding Friday. If the due date falls on a Sunday, the deposit is due on the following Monday. For more information see the Instructions for Form 720."

IRS allows private delivery services by DHL Express, FedEx and UPS. Don't forget to request written proof of the mailing date. Private delivery services do not deliver to P.O. box addresses. Only the U.S. Postal Service delivers to an IRS P.O. box address.



BOOKKEEPER'S HANDY REFERENCE

U.S. Tax Compliance Responsibilities YOU Should Know

Source: IRS

Make sure you discuss your situation with a professional who can give you small business tax information tailored to your specific circumstances.

Tax Event Moving Timeline
Collections - Tax Owing

10 years from the day a tax liability has been finalized

section 6502
IRS Refunds



3 years from the original deadline of the tax return

section 6511 or IRS Publication 17> What if I made a mistake?> Amended Returns and Claims for Refunds
Amending a Return

3 years back


IRS Audits




3 years from the day you actually filed your tax return
6 years if you underestimated income
any year if you filed a fraudulent return or did not file

section 6501
Tax Compliance Deadlines For Bookkeeper

U.S. Federal Tax Filing DEADLINES and DUE DATES

Source: IRS Tax Calendars - Publications 509 and 1518



Business Tax Compliance
Monthly, Quarterly and Annual EXCISE TAX Returns

  • Heavy Highway Vehicle Use Tax Return (Form 2290) is due and taxes payable (pay online using EFTPS) on the last day of each month for vehicles first used in the prior month. For example vehicles first used in September; return due and taxes payable on October 31.
  • Monthly Tax Return for Wagers (Form 730) is due and taxes payable (pay online using EFTPS) on the last day of each month on wagers first used in the prior month. For example wagers accepted used in June; return due and taxes payable on July 31.
  • Quarterly Federal Excise Tax Return (Form 720) is due April 30, July 31, October 31, January 31. 
  • Annual Tax Return for Wagering (Form 11-C) is due and taxes payable (pay online using EFTPS) on  June 30 if you are in the business of taking wagers.

Note that EFTPS payments must scheduled by 8 p.m. ET at least one calendar day BEFORE the tax due date.

Generally, due dates move to the next business day if they fall on the weekend or on a holiday. To find your due dates for the current month, open up the IRS Tax Calendar at tax.gov/calendar. Then select Excise Taxes and go to the month you are interested in.

You can also subscribe / download to the IRS calendar program to have the dates integrate with your mobile or desktop calendar software such as Outlook or iCal. Search for "IRS Tax Calendar for Businesses and Self-Employed" on the IRS website.




Bookkeeper's Small Business Tax Information
2016 /2017 U.S. Tax Season

Source: IRS Tax Calendars - Publications 509 and 1518

Attention EPTPS users, you must schedule your payment by 8 p.m. ET at least one calendar day before the tax due date.



Payment Deadline Tax Type Tax Period Form to be Filed Tax
Filing Deadline
SEPTEMBER to DECEMBER
Sep 15 Corporate Tax Return
if 5 month extension filed
2015 Form 1120 Sep 15
Sep 15 S Corporate Tax Return
if 6 month extension filed
2015 Form 1120S Sep 15
Sep 15**NEW Partner Taxes
if 6 month extension filed
2015 see Form 1065 and Sch K-1 to each partner Sep 15
Oct 17 Personal Tax Return
if 6 month extension filed
2015 Form 1040, 1040A or 1040-EZ Oct 17
Nov 10 Form 941 if deposited all required payments on time 3rd quarter Form 941* Nov 10
Dec 15 Corporate Estimated Tax Installment 4th installment see form 1120W Dec 15

* Nov 2 if you did not deposit payments on time.

Last Period's Deadlines:

Payment Deadline Tax Type Tax Period Form to be Filed Tax
Filing Deadline
JULY and AUGUST
July 1 Occupational Tax and Registration for Wagering July 1, 2015 to June 30, 2016 EFTPS
Form 11-C
Jul 1
Aug 1 Annual Return/Report of Employee Benefit Plan 2016 Form 5000 or 5000-Z Aug 1
Aug 10 Form 941 if deposited all required payments on time 2nd quarter 2016 Form 941* Aug 10

Deadlines Coming Up:

Payment Deadline Tax Type Tax Period Form to be Filed Tax
Filing Deadline
JANUARY
BEFORE Jan 1 Receive from employees & process BEFORE 1st 2017 wage payments 2017 Form W-4 Jan 1
Jan 15 Individuals
Est. Taxes
2016 Form 1040-ES or EPTPS or credit card Jan 15
Jan 15 Farmers
Fisherman

Est. Taxes*
2016 Form 1040-ES or EPTPS or credit card Jan 15
Feb 1 Personal Taxes
if January 15th installment not made
2016 see Form 1040, 1040A or 1040-EZ Jan 31
Jan 31 Mortgage Interest Statement 2016 Form 1098 Jan 31
Jan 31 Form 941 if deposited all required payments on time 4th quarter 2016 Form 941** Jan 31
Jan 31 Employer's Annual Federal Tax Return 2015 EFTPS Form 944** Jan 31
Jan 31 Employer Annual FUTA Return 2016 Form 940** Jan 31
Jan 31 Annual W-2 to Employees 2016 Form W-2 Postmarked or on website before
Jan 31
Jan 31**NEW Paper file* Transmittal of Wage and Tax Statements to SSA 2016 eForm W-3 and eCopy A of all W-2s Issued Jan 31
Jan 31**NEW Electronic Transmittal of Wage and Tax Statements to SSA 2016 E-Form W-3 and Copy A of all W-2s Issued Jan 31
Jan 31 Annual Independent Contractor Reporting 2016 Form 1099-MISC Jan 31
Jan 31 Annual Return of Withheld FIT on Forms 1099 2016 Form 945** Jan 31
Jan 31**NEW Paper file** Information Returns to SSA 2015 Forms 1099-B, 1099-S, 1099-MISC Jan 31
Jan 31**NEW Electronic Transmittal of Information Returns to SSA 2015 Forms 1098, 1099, W-2G Jan 31

* You have until Apr 15 to file if you paid your 2016 estimated tax payments by Jan 15, 2017

**Due date is February 10th not February 1st for filing Forms 940, 941, 944, 945 for the fourth quarter of 2016 if you timely deposited all required payments.

**NEW for 2017 Beginning in 2017, the deadline moves to January 31st for both paper and electronically filed forms. All paper filers and electronic filers for W-2 and W-3 forms ass well as 1099 must now be reported to the IRS/SSA at the same time the employees / contractors receive their statements.

Payment Deadline Tax Type Tax Period Form to be Filed Tax
Filing Deadline
FEBRUARY
Feb 16 File New Form W-4 2015 W-4 Feb 16
Feb 17 Begin ITW 2016 No Form W-4 Rec'd Feb 17
Feb 28 Farmers
Fisherman
Pay Tax Due*
2015 Form 1040 or EPTPS or credit card Feb 28

**Due date is February 10th not February 2nd for filing Forms 940, 941, 944, 945 for the fourth quarter of 2016 if you timely deposited all required payments.

Payment Deadline Week Day Tax Type Tax Period Form to be Filed Tax
Filing Deadline
MARCH, 2017
Mar 15, 2017 Wednesday S Corporate Tax Return if not filing 6 month extension 2015 Form 1120S Mar 15
Mar 15, 2017 Wednesday Partner's Share of Income, Deductions, Credits, Etc. 2015 Sch K-1 Form 1065 Mar 15

* You have until Apr 15 to file if you paid your 2016 estimated tax payments by Jan 15, 2017

Payment Deadline Week Day Tax Type Tax Period Form to be Filed Tax
Filing Deadline
APRIL, 2017
April 17, 2017**NEW Monday Corporate Tax Return if not filing 5 month extension 2016 Form 1120 Apr 17
Apr 17, 2017 Monday Personal Taxes
if NOT filing 6 month extension (Form 4868)
2016 see Form 1040, 1040A or 1040-EZ Apr 17
Apr 17, 2017 Monday Personal Taxes
if filing 6 month extension
Deposit Estimated Taxes
2016 see Form 4868 Oct 15
Payment Deadline Tax Type Tax Period Form to be Filed Tax
Filing Deadline
MAY
May 10 Form 941 if deposited all required payments on time 1st quarter 2017 Form 941* May 10
Payment Deadline Tax Type Tax Period Form to be Filed Tax
Filing Deadline
JUNE
Jun 15 Individuals Outside the US 2016 Form 1040 Jun 15

BOOKKEEPER'S HANDY REFERENCE

Market Watch - Business Plan Aids-Currency Converters

Here are some links to economic and market data which may be useful small business tax information when putting together your business plan.

Visit TD Wealth Management's Market Resource Center. You will find analysis of global economic performance with emphasis on North America provided by TD Economics. It includes U.S. consumer price index reporting. You'll also have access to a market snapshot, interest rate headlines and investment calculators.

New York Times Markets Overview highlights U.S. and world markets, currencies, consumer rates ... to name a few.

About.com has a good introductory article where you can learn about economic indicators entitled A Beginner's Guide to Economic Indicators. I was unable to find the U.S. equivalent of Canadian Business.com's nice concise summary of Economic Indicators. The Economist.com does have some Weekly Indicators: Economic and financial indicators. I'll keep looking for a concise U.S. small business tax information source for economic indicators.

Trading Economics United States Stock Market Chart - Dow Jones Industrial Average gives you the monthly historical values over a two year period. They also have a banner of economic indicators quoting the interest rate, growth rate, inflation rate, jobless rate, exchange rate and more. I like the historical value chart because I can visually see trending.

Here are links to two currency converters mentioned on the IRS website ... XE Currency Converter and World Currency Converter. You can pick which you prefer.

Monitor Bank Rates.com monitors Savings Rates. You key in your zip code and it finds the best rates near you.

Do you have a favorites Market Watch resource you use to help you prepare your business plan? Why not share it with other small business owners and bookkeepers in The Bookkeeping Forum - Favorite Bookkeeping Resources. Business financial calculators, websites, where to find U.S. federal budget information and the U.S. Internal Revenue Code (IRC) are all found in this forum.



BOOKKEEPER'S HANDY REFERENCE

Introductory Course on U.S. Payroll $9.95 USD

Are you new to payroll bookkeeping? One type of small business tax information that you must keep up with if you have employees is payroll tax ... so are you wondering what U.S. employee payroll taxes are all about?

The Bean Counter has a free online introductory payroll course. 

The course is designed for business owners who have no formal bookkeeping training or on the job experience.

The Bean Counter's So You Want to Learn Bookkeeping! Payroll is broken into an introduction and 8 lessons. Here is the course outline as described on the website dwmbeancounter.com:

The Introduction provides an overview of payroll, employees, and your requirements as a business.

Lesson 1 Types Of Compensation discusses and explains that an employee's compensation includes not only direct payments (salary and wages) but also indirect benefits known as fringe benefits or "perks".

Lesson 2 Types Of Deductions discusses and explains the different types of deductions that are taken from an employee's salary or wages such as social security, medicare, federal and state income tax, and other deductions such as health insurance and retirement plans.

Lesson 3 Calculating Payroll uses a fictitious company called Mom's Secret Recipes to illustrate what calculations are needed and how to do them in order to correctly calculate and pay your employees.

Lesson 4 Payroll Taxes and Withholdings discusses and reviews how an employer reports and deposits amounts deducted from their employees' wages and salaries and also how an employer is required to "match" amounts deducted for social security and medicare.

Lesson 5 Payroll Records illustrates and discusses the records needed by employers to properly documents and record their employee's wages and salaries and deductions taken.

Lesson 6 Self Employed reviews and explains what self employment tax is, who is required to pay this tax, and how to properly calculate, report, and deposit this tax.

Lesson 7 Government Regulations presents a brief overview of the federal and state laws, rules, and regulations that you as a business owner or manager need to be aware of.

Lesson 8 What You Should Know summarizes and reviews the major points covered in this tutorial.





If there is some small business tax information you would like me to present and/or track ... or that you would find helpful, please contact me with your suggestion.




It's been great chatting with you about your books today!


See you on the next page ...
Your tutor Lake

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Like this page? Please let Google
know by clicking the +1 button.






 Keep Your  eDocuments Safe And Secure… $7 USD
Version 2 now out
Bigger and Better



SHORTEN
Your Learning Curve!

Buy Now



Warm up your tea cup and check out these chats ...

Click on image above to read the chat.






Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.






Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.






A Handy Reference

Buy Now



Purchasing These Products Through My Links Helps To Support This Site



Virtual Bookkeeper

Training Program

Freelance Bookkeeper Guide

Step-by-Step Instructions
Internal Business Systems Setup

Click on logo for Instant Access!
Click here for more information.





U.S. Business Owners
Audit Yourself

Legal Health Checklist

Are Your Personal
Assets At Risk?