March 2020 Tax & Accounting Insight

Newsletter

Dear Clients, Colleagues and Friends,

As we continue to monitor Coronavirus (COVID-19) developments closely, Shilts CPA is doing everything we can to ensure the health and well-being of our employees, clients, and surrounding communities while also delivering reliable service to our clients.

As your trusted service provider, we also understand that limiting any impact this health event could have on our service to our clients is imperative. We are keenly focused on our preparedness efforts to maintain a safe work environment for our associates and to sustain our business operations.

As such, we have implemented the following:

  • Enabling work from home capabilities within impacted regions if/when it is needed
  • Providing our employees with information and best practices to prevent the spread of any illness
  • Limiting all non-essential business travel

We have also made plans to continue operating our business normally, which means our professionals will be available to you without service interruption whether they are working in our offices or remotely. We also provide our clients with several highly secure ways to send us documents electronically (ex. Citrix Share File, OfficeTools Client Portal).

Just like you, we will continue to monitor this fluid situation and adhere to all recommendations from the World Health Organization, U.S. Centers for Disease Control and Prevention, and local authorities as well as provide you tax related updates from the Internal Revenue Service.

We hope you find this month’s newsletter informative and insightful. Please reach out to us with any questions or concerns – we’re here to help.

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

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

  1. What to Do If You Are Missing Important Tax Forms – If you are ready to file your taxes but are missing important tax forms, here’s what you should do.
  2. Are Social Security Benefits Taxable? – If you receive Social Security, a tax professional can help you determine if some – or all – of your benefits are taxable.
  3. Worker Classification: Employee vs. Contractor – Employee or independent contractor? What’s the difference and why you need to know.
  4. It’s Not Too Late to Make an IRA Contribution – If you haven’t contributed funds to an IRA for tax year 2019, there’s still time. Here’s what you need to know.
  5. New Rules for Depreciation and Expensing – New rules and limitations are in effect for taxpayers who deduct depreciation for qualified property acquired and placed in service after September 27, 2017.

Tax Tips

QuickBooks Tips

Tax Due Dates

  • March 16 – Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in February.
  • March 16 – Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in February.
  • March 16 – Partnerships – File a 2019 calendar year income tax return (Form 1065). Provide each partner with a copy of their Schedule K-1 (Form 1065-B) or substitute Schedule K-1. To request an automatic 6-month extension of time to file the return, file Form 7004. Then file the return and provide each partner with a copy of their final or amended (if required) Schedule K¬1 (Form 1065) by September 15.
  • March 16 – S Corporations – File a 2019 calendar year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120S), Shareholder’s Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe in tax.
  • March 16 – S Corporation Election – File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S corporation beginning with calendar year 2020. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2021.
  • March 31 – Electronic Filing of Forms – File Forms 1097, 1098, 1099 (except Form 1099-MISC), 3921, 3922, and W-2G with the IRS. This due date applies only if you file electronically. The due date for giving the recipient these forms generally remains January 31.
  • March 31 – Electronic Filing of Form W-2G – File copies of all the Form W-2G (Certain Gambling Winnings) you issued for 2019. This due date applies only if you electronically file. The due date for giving the recipient these forms remains January 31.
  • March 31 – Electronic Filing of Forms 8027 – File copies of all the Forms 8027 you issued for 2019. This due date applies only if you electronically file.
  • March 31 – Electronic Filing of Forms 1094-C and 1095-C and Forms 1094-B and 1095-B – If you’re an Applicable Large Employer, file electronic forms 1094-C and 1095-C with the IRS. For all other providers of minimum essential coverage, file electronic Forms 1094-B and 1095-B with the IRS.

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.