April 2024 Newsletter
Generally, the IRS has three years to audit a tax return, from the later of the due date of the return or the date you file. You can also file an amended return within this time frame if you overlooked something.
If you own a C?corporation, you know there’s a tax advantage to taking money out as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but it can’t deduct dividend payments. Therefore, if funds are paid as dividends, they’re taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is taxed only once, to the recipient employee.
Businesses shut down for many reasons. Examples include an owner’s retirement, a lease expiration, staffing shortages, partner conflicts and increased supply costs. If you’ve decided to close your business, you might need assistance with some steps in the process, including handling various tax obligations.
Tax Tips
Payable-on-Death Accounts: Beneficial Tools if Used Correctly Avoid Misinformation About Tax-Favored Health Accounts 2024 Depreciation Limits for Business Vehicles
QuickBooks Tips
Tax Due Dates
April?15
Individuals: File a 2023 income tax return (Form?1040 or Form?1040-SR) or file for an automatic six-month extension (Form?4868). (Taxpayers who live outside the United States and Puerto Rico or serve in the military outside these two locations are allowed an automatic two-month extension without requesting an extension.) Pay any tax due.
Individuals: Pay the first installment of 2024 estimated taxes (Form?1040-ES) if not paying income tax through withholding or not paying sufficient income tax through withholding.
Individuals: Make 2023 contributions to a traditional IRA or Roth IRA (even if a 2023 income tax return extension is filed).
Individuals: Make 2023 contributions to a SEP or certain other retirement plans (unless a 2023 income tax return extension is filed).
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Individuals: File a 2023 gift tax return (Form?709) or file for an automatic six-month extension (Form?8892). Pay any gift tax due. File for an automatic six-month extension (Form?4868) to extend both Form?1040 and Form?709 if no gift tax is due.
Household employers: File Schedule?H, if wages paid equal $2,600 or more in 2023 and Form?1040 isn’t required to be filed. For those filing Form?1040, Schedule?H is to be submitted with the return so is extended if the return is extended.
Calendar-year trusts and estates: File a 2023 income tax return (Form?1041) or file for an automatic five-and-a-half-month extension (Form?7004) (six-month extension for bankruptcy estates). Pay any income tax due.
Calendar-year corporations: File a 2023 income tax return (Form?1120) or file for an automatic six-month extension (Form?7004). Pay any tax due.
Calendar-year corporations: Pay the first installment of 2024 estimated income taxes, completing Form?1120-W for the corporation’s records.
Employers: Deposit Social Security, Medicare and withheld income taxes for March if the monthly deposit rule applies.
Employers: Deposit nonpayroll withheld income tax for March if the monthly deposit rule applies.
April?30
Employers: Report Social Security and Medicare taxes and income tax withholding for first quarter 2024 (Form?941) and pay any tax due if all of the associated taxes due weren’t deposited on time and in full.
May?10
Individuals: Report April tip income of $20 or more to employers (Form?4070).
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Please call us at (310) 666-7772 if you have any questions.
World Accounting Group
10436 Santa Monica Blvd #3030
Los Angeles, CA 90025