January starts a new year and a new tax season. In the next month, you’ll receive an array of IRS forms reminding you that it’s time to file. The deadline this year is Monday, April 18, 2016, but once you’ve received all your forms it’s never too early to file. For standard filers, here’s what you might expect to get in the mail:
Form W-2 from your current or past employers.
Form 1099-INT or 1099-DIV from any financial institutions from whom you earn interest.
Contractors will receive form 1099-MISC with total miscellaneous income earned.
Homeowners will receive form 1098 with total mortgage interest payments.
Students will receive form 1098-T with total tuition paid; students with loans will receive form 1098-E with total interest paid on student loans.
If you’re a small business owner, you’ll need to provide your tax preparer with a profit and loss statement so that they can complete a Schedule C.
Give us a call or talk to your preparer for a complete list of forms needed to complete your return.
Audits are never fun, but being prepared can help relieve a ton of pressure. Start prepping early so you can be ready when the auditor arrives. Talk to your accounting and administrative staff and get them working on the items below. Being prepared can help save you time and money!
Ask your auditor for a list of documents to gather. This is the best place to start. Review the list, see what you need to gather, and estimate how much time you need to do so. Wait to pick an audit date until you have an idea of how long it will take you to gather items and work on the additional items below.
Review a detail of income and expense transactions. Take a quick look at the prior years’ transactions to catch any miscoded or mis-classed items.
Gather donor information. Donors who gave $5,000 or more during the year will be reported on the 990. Make sure you have donor names and addresses to provide to the auditor.
Double check what’s sitting in grants receivable. Gather information regarding multi-year loans, and confirm any grants received from the prior closed year properly offset the grants receivable account.
Double check all liabilities. Confirm that ending balances for loans, accrued PTO, and other payroll liabilities are correct.
Make sure prior year ending balances match prior year return. Double check that account beginning balances match the ending balances for the prior year’s 990.
For everyone who’s looking to start the new year off right, check out the tax filing dates below. Don’t forget to talk to your tax preparer about gathering information needed to complete these filings.
Deadlines for Businesses and Non-profits
February 2, 2015 – W-2′s due to employees; 1099′s due to contractors/investors/others
March 2, 2015 – W-3 and 1096’s due to IRS
March 16, 2015 – Corporate tax returns or filing extension due to IRS
May 15, 2015 – Non-profit tax returns or filing extension due to IRS
Deadlines for Individuals
April 15, 2015 – Individual tax returns or extension due to IRS
If you are unsure of your filing requirements, visit the IRS website to determine your obligation.
If your staff receive tip income, here’s what you need to know about your reporting requirements:
Tips are taxable – Cash or not, tips are subject to federal income, and Social Security and Medicare taxes.
Tips must be reported – Employees are responsible for reporting tips to their employer. Employers are responsible for reporting tip income to the IRS, and for withholding federal income, Social Security and Medicare taxes.
Tips are easily recorded – The IRS offers form 1244, Employee’s Daily Record of Tips and Report to Employee, to help employees and employers record tip income.