Jun 24

March 2024

Here are some important due dates to remember for taxpayers with businesses. The first is for taxpayers who file Form 1120-S for S-Corporations and Form 1065 for Partnerships. These are due on March 15th. The penalty for late filing is $235 per month, per shareholder, or partner, with a maximum penalty of twelve (12) months. If you want to avoid this and, you need more time to gather your receipts, complete all the information necessary for your income and expenses; you’ll need to file an extension for your company by March 15th, 2024. The extension will allow you to complete your financial information and file your company tax return by September 16th, since this year, September 15th is on Sunday, and the due date will be the next business day, September 16th, 2024. If you filed an extension for your personal tax return on April 15th, 2024, your personal tax return will be due October 15th, 2024. However, it is crucial to clarify the misconception about the extension of the personal tax return. The extension is to file your personal return six months later and any estimated tax liabilities are due on April 15th, 2024. You’ll be charged with penalty and interest for any month, or fraction thereof, on the tax liability not paid on or before April 15th, 2024. Next, after you file your tax return with your payment, the Internal Revenue Service Center (IRS) will send you a letter with total penalties and interest calculated after your tax return is processed. Nevertheless, you can make monthly payments until October 15th, at any time, to reduce these penalties and interest. A reminder to taxpayers requesting the IRS to treat your Limited Liability Company (LLC) as an S corporation requires filing the Form 2553. This election must be made no later than two (2) months and fifteen (15) days after the beginning of the corporation’s tax year and  this date to file is March 15th, 2024. Perhaps, in the first year of operations, the company missed the due date. You can apply for late election relief, with reasonable cause, for failing to file Form 2553 on time. The next topic, due by April 1st, 2024, is the Retirement Minimum Distributions (RMD). Beginning in 2023, the excise tax for not taking the RMD has been reduced from 50% to 25%. Yes, you will have to withdraw the money and pay an extra 25% tax. Perhaps, you have an opportunity to apply for a waiver on Form 5329. The RMD is the minimum amount you need to withdraw every year from your Traditional Retirement Account (IRA), SIMPLE IRA, SEP IRA, 401(k) or other retirement account when you reach age 72 (73 if you reach age 72 after December 31st, 2022) by April 1st, of the following calendar year. You reach age 72 (73 if you reach age 72 after December 31, 2022). Next,  Roth IRA’s do not require withdrawals by the living owner. Additionally, designated ROTH in 401(k) or 403(k) plans are still subject to RMD rules for 2022 and 2023. Good news for 2024 and later years, the designated ROTH accounts no longer require an RMD. One last item involves the new Beneficial Ownership Information Reporting requirement by the U.S. Treasury.  Any entity registered with the Florida Division of Corporations needs to review the filing requirements and the reporting is due by March 31, 2024, or sooner if organized during 2024.  Go to boiefiling.fincen.gov for more information or call our office.  Failure to file will result in an astronomically severe penalty.  For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor.   Provided by Pedro L. Baldeon, E.A., (321) 632-5726, a member of the National Society of Tax Professionals.