January 2020 Tax & Accounting Insight

Newsletter

Dear Clients, Colleagues and Friends,

Welcome, 2020! Each year brings changes to current tax law, and this year is no different. From tax rate schedules to health savings accounts, here is what you need to know!

Josh Shilts, CPA/ABV/CFF/CGMA, CFE

Some of the articles and content we want to make you aware of are

  1. 2019 Tax Organizer – You should now be in receipt of your 2019 Individual and/or Business Tax Organizer. Please remember to submit this information to us as soon as possible. Early completion of it along with submission of your tax documentation not only helps us to ensure the timely filing of your return, but also to minimize your preparation costs! If you have questions, please reach out to our Tax Team by clicking here or calling (844) 850-6166.
  2. What’s New for the 2020 Tax Filing Season – While the 2020 tax filing season promises to be less confusing than 2019, there are still a number of changes that taxpayers should be aware of.
  3. Tax Breaks for Taxpayers Who Itemize – Many taxpayers opt for the standard deduction because it is easier, but sometimes itemizing your deductions is the better choice – resulting in a lower tax bill.
  4. Got Debt? Tips to Improve Your Financial Situation – If you’re having trouble paying down debt here are some steps to take now to avoid future financial ruin.
  5. Starting a Home-Based Business – Every day, people achieve economic independence by turning their skills into dollars. If you think a home-based business might be right for you, then here’s what you should know.
  6. SECURE ACT Has Potential Income Tax Time Bomb for Large IRAs/401(k)s – For anyone with a significant IRA or 401(k) retirement plan, or who has not yet turned 70 1/2 by 2019, the SECURE ACT is a really significant piece of legislation.

Tax Tips

QuickBooks Tips

Tax Due Dates

  • During January– All employers – Give your employees their copies of Form W-2 for 2019 by January 31, 2020. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee of the posting by January 31.
  • January 31 – Employers – Federal unemployment tax. File Form 940 for 2019. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you already deposited the tax for the year in full and on time, you have until February 10 to file the return.
  • January 31 – Farm Employers – File Form 943 to report social security and Medicare taxes and withheld income tax for 2019. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year in full and on time, you have until February 10 to file the return.
  • January 31 – Certain Small Employers – File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2019. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more from 2019 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return. If you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.
  • January 31 – Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2019. Deposit any undeposited tax. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until February 10 to file the return.
  • January 31 – Employers – Nonpayroll taxes. File Form 945 to report income tax withheld for 2019 on all nonpayroll items, including backup withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit any undeposited tax. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year in full and on time, you have until February 10 to file the return.
  • January 31 – Payers of Gambling Winnings – If you either paid reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of Form W-2G.
  • January 31 – Employers – Give your employees their copies of Form W-2 for 2019. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee.
  • January 31 – Businesses – Give annual information statements to recipients of certain payments made during 2019. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be issued electronically with the consent of the recipient. This due date only applies to certain types of payments.
  • January 31 – Individuals – who must make estimated tax payments. If you did not pay your last installment of estimated tax by January 15, you may choose (but are not required) to file your income tax return (Form 1040 or Form 1040-SR) for 2019 by January 31. Filing your return and paying any tax due by January 31, 2020, prevents any penalty for late payment of the last installment. If you cannot file and pay your tax by January 31, file and pay your tax by April 15, 2020.

Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.