28 total days, 20 working days, and 1 federal holiday, it’s no wonder that February always seems to come and go in the blink of an eye.
Additionally, the beginning of the year is a chaotic time for a majority of business owners, this, combined with the plethora of outside noise, is enough to steer anyone off course.
That’s why we’re here – to turn our fellow business owners’ attention to the here and now. March is now upon us, so it’s time to gear up for the important tax deadlines you should know this month!
Tax and Payroll Compliance Deadlines
Payroll Tax Deposits (for semi-weekly depositors)
Employers are required by the IRS to make regular federal payroll tax deposits, where the frequency depends on the amount of income and FICA taxes reported between July 1, 2020, and June 30, 2021. This is known as the lookback period.
If you reported over $50,000 in payroll taxes throughout the lookback period, you are considered a semiweekly depositor.
On the other hand, if you reported less than $50,000 in payroll taxes during the lookback period, you would follow a monthly deposit schedule. Whatever your deposit schedule, you are required to make your payments through the Electronic Federal Tax Payment System (EFTPS) on time, otherwise you may be subject to a penalty of up to 15%.
(If you are looking for further information on your payment schedule and federal payroll tax deposits in general, read Publication 15.)
Note that depending on where your business is located, you may be responsible for additional payroll tax requirements.
March 1, 2022
Form 1099-R Paper Filing Deadline
Form 1099-R is used to report passive income and distributions from retirement plans, IRAs, pensions, annuities and more. If you have decided to mail in paper versions of this form to the IRS, be sure to turn them in with Form 1096 by March 1, 2022.
If you have to file 250+ of these forms, the IRS requires that they be filed through the Filing Information Returns Electronically system. (This e-filing due date was January 31, 2022.)
Form 8809 Paper Filing Deadline
Form 8809 is used to request a 30-day due date extension for W-2, W-2G, 1042-S, 1095, 1097, 1098, 1099, 3921, 3922, 5498, 8027, and 1094-C. The deadline for submitting paper forms is March 1, 2022.
March 15, 2022
Payroll Tax Deposits (for monthly depositors)
To find out if you are considered as a monthly depositor, check above. Employers who follow a monthly deposit schedule must deposit their taxes from February by March 15, 2022.
Form 1042 and 1042-S Due
Form 1042 is used to report income tax withheld from distributions and other certain payments made to nonresident aliens. Form 1042-S is used to report retirement plan distributions and other certain payments made to nonresident aliens who are subject to income tax withholding.
Both of these forms must be filed by March 15, 2022. The IRS recommends electronic filing of these forms through the FIRE system, however, if you prefer to file paper forms instead, be sure to submit Form 10042-T along with your documents.
S Corp (Form 1120-S) and Partnership (Form 1065) Tax Returns Due
If your business is set up as an S Corporation (or an LLC taxed as an S Corp), you will need Form 1120-S to report your income, losses and dividends as a company shareholder. Think of this document as a tax return for your company.
Form 1065 is used to report the gains, losses, deductions and credits of a business partnership (or an LLC set up as a partnership). Keep in mind that in this situation, your company would file a single tax form but isn’t responsible for paying the income tax itself. Each partner is responsible for paying their share of income from the business on their personal tax returns. (Form 1040).
Additionally, S cops and Partnerships must submit a Schedule K-1 outlining the percentage of profits and losses assigned to each shareholder (or partner) in the business.
Turn in these forms to the IRS by March 15, 2022 (unless you applied for an extension).
Request for Automatic Extension of S Corp and Partnership Tax Returns Due
If you need additional time to file your S Corp or partnership tax return, submit Form 7004 to the IRS by March 15, 2022, to extend your deadline to September 15, 2022. Because the IRS can charge you with high penalties and interest charges if you file your taxes late or provide insufficient documents, it’s good to know that you do have an option to extend your deadline. However, even if you apply for an extension, you still need to estimate and pay your tax bill by the deadline, otherwise your request can be denied.
March 31, 2022
Quarter 1 of 2022 Ends
If your business follows a calendar year cycle, the first quarter of the year ends on March 31, 2022.
Deadline to File Forms 1099 Electronically
The IRS uses variations of Form 1099 to track the difference types of income or payments (excluding salaries, wages and tips) that taxpayers receive throughout the year.
All 1099 forms must be turned in to the IRS by March 31, 2022, via the FIRE system if you plan to file electronically.
Form 5330 Due
Employers who offer benefit plans like 401(k)s to their workers, they must make any required deposits in a regular and timely manner. Because contributions to these accounts compound over time, late deposits can result in a loss of potential earnings for the employee. To encourage companies to deposit on time, the IRS has a series of guidelines for employers to follow, as well as penalties if they fail to.
IRS Form 5330 is used to report and pay excise taxes on these missing earnings from employee benefit plans, and since the form is used for a variety of situations the filing deadline depends on the reason for the excise tax.
Companies who issued failed Actual Contribution Percentage (ACP) and ACP test distributions more than 2 and a half months after the end of the plan year must file Form 5330 with the IRS by March 31, 2022. They must also pay an excise tac of 10% of the total refund amount (not including gains of investment)
Alternatively, you can file Form 5558 to request an extension of up to six months.
Form 8809 E-Filing Deadline
If you need additional time to file specific information returns- such as 1094-C, 1099, or 9027 – submit Form 8809 to the IRS by March 31, 2022, for an automatic 30-day extension of the deadline.
By filing another Form 8809, an additional 30-day extension can be requested. However, to receive this second extension, you will need to meet certain hardship condition qualifications, and it isn’t available for Forms W-2 or 1099-MISC.
Keep in mind that if you choose to take advantage of one or both of these extensions, they will only extend to the filing due date, and you will still be responsible for furnishing any required statement to the taxpayer recipients.
To request an extension for most forms, you can file Form 8809 online through the FIRE system or by mail. However, for documents like Form 1099-MISC or W-2, you can only submit your request via mail.
Remember that tax rules are complex, can change over time and vary by location and industry, so always consult with your tax advisor or CPA for guidance specific to your situation. Because the IRS has stated that this tax season is “going to be messy” you want to make sure that you do everything in your power you can to ease the process as much as you can. A smooth tax season starts with the right adviser, one with a high level of expertise and industry wide experience. Let one of our MCDA CCG team of financial consultants be that someone.
No matter how unique and complex your situation, we can assure your satisfaction. As we continue to pass deadlines and near the end of the season, you have no more time to waste. Give our office – headquartered in Placentia, Orange County, California- a call! ((657) 258-0577)
Other resources our readers find helpful…