The 2022 tax season will be soon be upon us. In order to help make the 2022 filing season operate smoothing for individuals and business owners, here are some things to consider:
Businesses
1. Evaluate vendor profiles to ensure Tax ID numbers are obtained for those vendors who will need to receive a 1099. These are vendors who perform services and are paid more than $600 for the year. If Tax IDs are needed, send a W9 form to the vendor for them to fill out and return. W9 should be received back from vendors no later than 12/31/22. 1099s are not exclusive to vendors who provide contracted services. Also include 1099s for amounts paid to legal services, rents, barter exchanges, and interest and dividends paid to shareholders. This is not an exhaustive list of 1099 recipients. Review the IRS website for more information on 1099 processing.
2. Review with LFC projected net income for the year to determine business taxable income. Determine if estimated payments made during the year are sufficient to pay tax due in 2022. Make revision to 4th quarter tax payment if necessary.
Important dates to remember
1/31 1099s and W2s to recipients
940 & 941 Payroll Quarterly reports due
MN wage reports (Income Tax & MN UI) due
3/15 Partnership and Corporate returns due
Filing an extension for partnership and corporate returns
4/17 Schedule C business tax returns due
9/15 Extension deadline for partnership and corporate tax returns due
Individuals
1. Review with LFC most recent paystub to determine if withholding taxes are sufficient to pay tax liability for 2022.
2. Calculate estimated tax payment for January 2023 if determined withholding for 2022 is inadequate to pay total tax for 2022.
4. Complete new W4 and implement in January 2023 to ensure tax is accurate for 2023.
Important dates to remember
1/17 Due date for 4th quarter estimated tax payment for 2022
4/17 Due date of individual tax return
Final date to make prior year contribution to IRAs
Filing an extension for individual returns due
10/16 Filing deadline for extended individual returns due
