January 1 – 31 – Employee W-2sGive your employees their copies of Form W-2 for 2008 by February 2, 2009. 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 February 2.
January 1 – Earned Income Credit
If you are an employer and have employees receiving advanced Earned Income Credit payments, stop making those payments unless they provide you with a new Form W-5 for 2009.
January 5 - Time to Call For Your Tax Appointment
January is the beginning of tax season. If you have not made an appointment to have your taxes prepared, we encourage you do so before the calendar becomes too crowded.
Do not be concerned about having all your information available before making the appointment. If you do not have all your information, we will simply make a list of the missing items. When you receive those items, just forward it to us.
Many of our clients find this far more convenient than waiting and getting caught up in the February crunch.
We look forward to hearing from you.
January 15 – Farmers & Fishermen Estimated Tax Payment Due
If you are a farmer or fisherman, it is time to pay your estimated tax for 2008 using Form 1040-ES. You have until April 15, 2009 to file your 2008 income tax return (Form 1040). If you do not pay your estimated tax by January 15, you must file your 2008 return and pay any tax due by March 2, 2009 to avoid an estimated tax penalty. Generally, this due date is March 1, but when the due date falls on a Saturday, Sunday or Holiday, it is not due until the next business day.
January 15 – Employer’s Monthly Deposit Due
If you are an employer and the monthly deposit rules apply, January 15 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for December 2008. This is also the due date for the nonpayroll withholding deposit for December 2008 if the monthly deposit rule applies.
February 2 – 1099s Due To Service Providers
If you are a business or rental property owner and paid $600 or more for the services of individuals (other than employees) during a tax year, you are required to provide Form 1099 to those workers by February 2. "Services" can mean everything from labor, professional fees and materials, to rents on property. In order to avoid a penalty, copies of the 1099s need to be sent to the IRS by the last day of February. They must be submitted on magnetic media or on optically scannable (OCR) forms. This firm prepares 1099s in OCR format for submission to the IRS with the 1098 submittal form. This service provides both recipient and file copies for your records. Please call this office for preparation assistance. Generally, this due date is January 31, but when the due date falls on a Saturday, Sunday or Holiday, it is not due until the next business day.
February 2 – Employer’s Reporting Requirements
Generally, this due date is January 31, but when the due date falls on a Saturday, Sunday or Holiday, it is not due until the next business day.
W-2 Due to All Employees - All employers need to give their employees copies of the W-2 form for 2008. If an employee agreed to receive their W-2 form electronically, post it on a website and notify the employee of the posting.
File Form 941 and Deposit Any Undeposited Tax - File Form 941 for the fourth quarter of 2008. Deposit any undeposited Social Security, Medicare and withheld income 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.
Certain small employers - File Form 944 to report social security and Medicare taxes and withheld income tax for 2008. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more for 2008 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return.
File Form 943 – All farm employers should file Form 943 to report Social Security, Medicare taxes and withheld income tax for 2008. 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.
W-2G Due from Payers of Gambling Winnings - If you paid either reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of the W-2G form for 2008.
File Form 945 - File Form 945 to report income tax withheld for 2008 on all non-payroll items, including back-up 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.
File Form 940 -Federal Unemployment Tax - File Form 940 (or 940-EZ) for 2008. 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 deposited the tax for the year in full and on time, you have until February 10 to file the return.
Annual Information Statements – Give annual information statements to recipients of certain payments you made during 2008. You can use the appropriate version of Form 1099 or other information return. Payments that may be covered include the following:
• Cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish
• Compensation for workers who are not considered employees (including fishing boat proceeds to crew members)
• Dividends and other corporate distributions
• Interest
• Amounts paid in real estate transactions
• Rent
• Royalties
• Amounts paid in broker and barter exchange transactions
• Payments to attorneys
• Payments of Indian gaming profits to tribal members
• Profit-sharing distributions
• Retirement plan distributions
• Original issue discount
• Prizes and awards
• Medical and health care payments
• Debt cancellation (treated as payment to debtor)