U.S.A. Small Business Tax Information

by L. Kenway BComm CPB Retired

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INDEX - Basic Tax Articles for U.S. Bookkeepers
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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.

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.

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.

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.

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.

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

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
2018 /2019 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
JANUARY
BEFORE Jan 1	Receive from employees & process BEFORE 1st 2019 wage payments	2019	Form W-4	Jan 1
Jan 15	Individuals Est. Taxes	2018	Form 1040-ES or EPTPS or credit card	Jan 15
Jan 15	Farmers Fisherman Est. Taxes*	2018	Form 1040-ES or EPTPS or credit card	Jan 15
Feb 1	Personal Taxes if January 15th installment not made	2018	see Form 1040, 1040A or 1040-EZ	Jan 31
Jan 31	Mortgage Interest Statement	2018	Form 1098	Jan 31
Jan 31	Form 941 if deposited all required payments on time	4th quarter 2018	Form 941**	Jan 31
Jan 31	Employer's Annual Federal Tax Return	2018	EFTPS Form 944**	Jan 31
Jan 31	Employer Annual FUTA Return	2018	Form 940**	Jan 31
Jan 31	Annual W-2 to Employees	2018	Form W-2	Postmarked or on website before Jan 31
Jan 31**NEW	Paper file* Transmittal of Wage and Tax Statements to SSA	2018	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	2018	E-Form W-3 and Copy A of all W-2s Issued	Jan 31
Jan 31	Annual Independent Contractor Reporting	2018	Form 1099-MISC	Jan 31
Jan 31	Annual Return of Withheld FIT on Forms 1099	2018	Form 945**	Jan 31
Jan 31**NEW	Paper file** Information Returns to SSA	2018	Forms 1099-B, 1099-S, 1099-MISC	Jan 31
Jan 31**NEW	Electronic Transmittal of Information Returns to SSA	2018	Forms 1098, 1099, W-2G	Jan 31

* You have until Apr 15 to file if you paid your 2018 estimated tax payments by Jan 15, 2019

**Due date is February 10th not February 1st for filing Forms 940, 941, 944, 945 for the fourth quarter of 2018 if you timely deposited all required payments.

**REMINDER Beginning in 2017, the deadline moved to January 31st for both paper and electronically filed forms. All paper filers and electronic filers for W-2 and W-3 forms as 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 and MARCH
Feb 15	File New Form W-4	2018	W-4	Feb 15
Feb 16	Begin ITW	2018	No Form W-4 Rec'd	Feb 16
Feb 28	Farmers Fisherman Pay Tax Due*	2018	Form 1040 or EPTPS or credit card	Feb 28
Mar 15	S Corporate Tax Return if not filing 6 month extension	2018	Form 1120S	Mar 15
Mar 15	Partner's Share of Income, Deductions, Credits, Etc.	2018	Sch K-1 Form 1065	Mar 15

* You have until Apr 15 to file if you paid your 2018 estimated tax payments by Jan 15, 2019

Payment Deadline	Tax Type	Tax Period	Form to be Filed	Tax Filing Deadline
APRIL to JUNE
April 15	Corporate Tax Return if not filing 5 month extension	2018	Form 1120	Apr 15
Apr 15	Personal Taxes if NOT filing 6 month extension (Form 4868)	2018	see Form 1040, 1040A or 1040-EZ	Apr 15
Apr 15	Personal Taxes if filing 6 month extension Deposit Estimated Taxes	2018	see Form 4868	Oct 15
May 10	Form 941 if deposited all required payments on time	1st quarter 2019	Form 941*	May 10
Jun 15	Individuals Outside the US	2018	Form 1040	Jun 15

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, 2018 to June 30, 2019	EFTPS Form 11-C	Jul 1
July 31	Annual Return/Report of Employee Benefit Plan	2018	Form 5000 or 5000-Z	July 31
Aug 10	Form 941 if deposited all required payments on time	2nd quarter 2019	Form 941*	Aug 10

Payment Deadline	Tax Type	Tax Period	Form to be Filed	Tax Filing Deadline
SEPTEMBER to DECEMBER
Sep 15	S Corporate Tax Return if Form 7004 extension filed	2019	Form 1120S	Sep 15
Sep 15	Partner Taxes if Form 7004 extension filed	2019	see Form 1065 and Sch K-1 to each partner	Sep 15
Sep 15	C corporate Estimated Tax Installment	3rd installment	see form 1120W	Sep 15
Oct 16	C Corporate Tax Return if 6 month extension filed	2019	Form 1120	Oct 15
Oct 16	Personal Tax Return if 6 month extension filed	2019	Form 1040, 1040A or 1040-EZ	Oct 15
Nov 12	Form 941 if deposited all required payments on time	3rd quarter	Form 941*	Nov 13
Dec 15	C corporate Estimated Tax Installment	4th installment	see form 1120W	Dec 15

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

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.

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.

See you on the next page ...
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Bookkeeping Essentials › U.S. Small Business Tax Information