Masthead Dennis

 

Tax & Business Newsletter - January 2017

 



Book of The Month
Run your company. Don't let it run you.

Most business owners started their company because they wanted more freedom-to work on their own schedules, make the kind of money they deserve, and eventually retire on the fruits of their labor.

Unfortunately, according to John Warrillow, most owners find that stepping out of the picture is extremely difficult because their business relies too heavily on their personal involvement. Without them, their company-no matter how big or profitable-is essentially worthless.

But the good news is that entrepreneurs can take specific steps-no matter what stage a business is in-to create a valuable, sellable company. Warrillow shows exactly what it takes to create a solid business that can thrive long into the future.

Mark your calendar: First quarter 2017 t ax deadlines
Tax return filing season has arrived, which means it's time to mark your calendar for these 2017 tax deadlines.
 

●   January 17 - Due date for the fourth and final installment of 2016 estimated tax for individuals (unless you file your 2016 return and pay any balance due by January 31).

●   January 31 - Employers must furnish 2016 W-2 statements to employees, and send copies to the Social Security Administration (both paper and electronic).

●   January 31 - Payers must file all copies of 2016 Forms 1099-MISC with non-employee compensation in Box 7. For these forms, the January 31 due date applies to both paper and electronic filing.

●   January 31 - Employers must generally file 2016 federal unemployment tax returns and pay any tax due.

●   February 28 - Payers must file information returns (except certain Forms 1099-MISC) with the IRS. (Except for certain Forms 1099-MISC, March 31 is the deadline if filing electronically.)

●   March 1 - Farmers and fishermen who did not make 2016 estimated tax payments must file 2016 tax returns and pay taxes in full.

●   March 2 - Large employers must furnish Form 1095-B and Form 1095-C to employees.

 

Note the new due dates for Forms W-2 and 1099
As you begin your January payroll preparation, take into account earlier due dates for two common information reporting forms (see above).
 
Forms W-2 for 2016 are due January 31 for all copies. In the past, you had to provide Forms W-2 to your employees by January 31. Now the January 31 deadline also applies to copies submitted to the Social Security Administration.
 
The due date for filing all copies of 2016 Forms 1099-MISC with non-employee compensation in Box 7 is January 31, 2017. For these forms, the January 31 due date also applies to both paper and electronic filing.
 
Standard mileage rates go down for 2017
Have you noticed the price of gas? So has the IRS - and the reimbursement rate for business mileage has gone down as a result. The new rate for 2017 is 53.5¢ per mile, down from the 2016 rate of 54¢ per mile.
 
The rate for medical and moving mileage also decreased. Effective January 1, the standard rate is 17¢ per mile, down from last year's 19¢. The charitable mileage rate remains 14¢.

IRS warns of delays in refunds and April 15th comes late again
The IRS announced that individual income tax returns cannot be transmitted electronically before  January 23, 2017. They also warned that sending a paper return will not accelerate the processing  of your return and may even slow it down as they will not process paper returns prior to January  23rd.
 
They remind taxpayers that a new law will require the IRS to hold back tax refunds claiming  Earned Income Tax Credit and the Additional Child Tax Credit until February 15, 2017. The IRS is  attempting to reduce fraudulently filed returns. They are also tr ying to ensure that the new filing  deadline for W-2s and 1099s will give them enough time to match those forms to individual  income tax returns.
 
Allowing for processing time, weekends, and Presidents' Day, the IRS states that taxpayers  claiming these two credits will likely not have access to their refunds until the week of February 27th.
 
Finally, the last day for filing your personal income tax return or extension will be April 18th because the 15th is on a weekend and the following Monday is Emancipation Day in DC.

IRS extended the due date for Forms 1095
When you're an applicable large employer (generally, when you employ 50 or more full-time workers and equivalents), you're required to provide information about health coverage to the IRS and to your employees. The IRS extended the date on which two of these forms are due to your employees. Instead of being due January 31, Form 1095-B, Health Coverage, and Form 1095-C, Employer Provided Health Insurance Offer and Coverage,  are now due March 2, 2017. There is no change to the February 28, 2017, due date for filing paper forms with the IRS, nor the March 31, 2017, due date for filing electronically.

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This newsletter provides business, financial, and tax information to clients and friends of  our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.

Snyder & Company, PA, CPA's
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Wilmington, DE 19810
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