Below is a month by month breakout for the first four months of 2018. The list is not an all-inclusive list; it is important to be in touch with your CPA to ensure no filings are missed for you or your business.
- Businesses are required to file their Form W-2 and Form 1099s by January 31, 2018. This includes both the employee or contractor copy as the government filing copy. These filings are taken very seriously by the Internal Revenue Service (IRS). Over the years the IRS has dramatically increased the penalties for non-filing and late filing of 1099s. If filed late, the most current penalties are as follows: 30 days late $50 per 1099/$187,500 max, 31 to 182 days late $100 per 1099/$536,000 max, and after 182 days or non-filing $260 per 1099/$1,072,500 max. Each of these penalties can be overridden with a more aggressive intentional disregard penalty that carries $530 per 1099 with no maximum if the IRS believes there was intentional non or late filing. The penalty amounts listed apply to small business with $5 million or less in gross receipts. Again, they are due January 31, 2018.
- For business owners in Washington, the Washington Business & Occupation (B&O) annual reports are due January 31, 2018. This is a tax related to business who operate and have sales in Washington.
- Estates and trusts who pay quarterly estimates have a deadline of Tuesday January 16, 2018 to pay their 4th Quarter Estimates. This deadline applies to both the Federal Income Taxes and State Income Taxes if required to pay estimates. The state of Oregon does not require estimated tax payments related to estate and trust income tax returns.
- Taxpayers who pay quarterly estimates have a deadline of Tuesday January 16, 2018 to pay their 4th Quarter Estimates. This deadline applies to both the Federal Income Taxes and State Income Taxes.
- Additionally, taxpayers who worked either as employees or as independent contractors should receive their Form W-2s and Form 1099MISC no later than January 31, 2018. If the date passes and you have not received the form, please reach out to your employer or business you are contracted with.
- Although this is not a filing deadline for individuals, financial institutions will need to have 1099-B sale of stock, 1099-INT interest income, and 1099-DIV dividend income forms mailed out to investors no later than February 15, 2018. For majority of taxpayers that do not own businesses, this will generally be the last piece of information required to file their tax return.
- March is a very busy month regarding business taxes. Starting last year, the IRS moved the due date of partnership and S-Corporation returns from April to March. All partnerships and S-Corporations who are on a calendar year end for taxes will need to either have their income tax returns filed or extended by March 15, 2018. If an extension is requested, the business will receive a 6 month extension
- March 6, 2018 is an important date for trusts and estates. If the trust document gives discretion over distributions to beneficiaries it may be prudent to evoke a 65 day election under the internal revenue code §663(b). The 65 day rules allows a trust or estate to include distributions made within the first 65 days after the close of the tax year to be included in the calculation of the distribution deduction against taxable income. This planning technique when used in the right scenario can help limit taxable income in a trust retroactively.
- All C-Corporations will need to file their 2017 income tax returns by April 17, 2018. Generally this date falls on the 15th of the month, however, this year the 15th is a Sunday, and the 16th is Emancipation Day in the District of Columbia. This provides two extra days in the filing season. Additionally, all C-Corporations will need to pay their 2018 estimated 1st Quarter tax payments by April 17, 2018 as well. State filing dates will vary, but the state of Oregon’s due date is May 15, 2018. If the filing deadlines cannot be met, a 6-month extension request can be filed. This is an extension to file, not an extension to pay. To avoid Failure-to-Pay penalties, all tax must be paid in by the original filing deadline.
- Calendar year trusts and estate income tax returns are due April 17, 2018. This is for both the federal returns and the Oregon returns. If the filing deadline cannot be met, a 5 ½ month extension request can be filed. Like all extensions though, it is an extension to file, not an extension to pay. All tax for the 2017 tax year must be paid in at this time to avoid Failure-to-Pay penalties. Additionally, 1st quarter 2018 estimated tax payments are due on April 17, 2018.
- April 17, 2018 is the deadline for non-extended personal income tax returns. If you cannot meet the filing deadline, a 6-month extension can be requested. This is an extension to file, not extension to pay. All tax for the 2017 tax year must be paid in by April 17, 2018 in order to avoid Failure-to-Pay penalties. Additionally, most state personal income tax returns will also be due on April 17, 2018. Specifically, Oregon’s personal income tax return is due on April 17, 2018.
- In addition to filing, taxpayers who pay quarterly estimates, their 1st quarter 2018 payment is due April 17, 2018. This is for federal and Oregon payments.
- Lastly, April 17, 2018 is also a deadline to make contributions retroactively to 2017 for the following types of tax preferred accounts: Traditional IRA, Roth IRA, Health Savings Accounts, SEP-IRA, state sponsored 529B college savings plans, and Solo 401(k)s. Information on some of these accounts and their advantages have been discussed previously in our “Targeted Tax Planning Ideas to Minimize Taxes” article.
There are many deadlines out there. It is important, especially this time of the year, to be in close contact with your CPA. Call today to schedule a meeting with Fitzpatrick, Johnson & Associates CPAs, (503) 472-0576 and see how we can help you.
Fitzpatrick, Johnson & Associates CPAs, is a full service accounting firm providing tax, financial statement, and bookkeeping services based in McMinnville, OR, southwest of Portland, OR.