Tax

2020 U.S. Tax Filing Deadlines for 2019 Tax Returns

By Finaloop Team
January 23, 2020

Everyone hates paying taxes, but even worse, we all hate preparing our tax filings. We all get so busy that we leave it to the last minute, quietly hoping tax day never comes, until it finally creeps up on us.

Finaloop's unique ability to connect to all your eCommerce business applications, including your POS, online shop, marketplace store, payment processors, invoice and billing and more, allows Finaloop to organize all of your information in one central location, making it easy to read and understand. Finaloop performs all of the bookkeeping tasks for you, providing you with a full and proper understanding of your business's current financial and tax status.

Finaloop can help take the stress, hard work and worry away, helping you with all your bookkeeping and tax filing preparation. We will make sure all the proper and necessary paperwork is done right and is ready for you on time.

A few important dates to remember for filing your 2019 taxes:

Federal government 2020 filing deadlines

Note to S Corporations and Partnerships

Entities like S Corps and Partnerships are called "pass-through" entities because they do not pay income taxes. Rather the partners or shareholders pay taxes on the entity's income on their personal tax returns. When the S Corp or Partnership files its Form 1065 to the IRS, it is important to issue Schedule K-1's to each partner or shareholder for them to report on their personal tax returns.

If you will be filing an extension to file taxes, it is important to inform the partners and shareholders so they can do the same, as they will need the K-1's before they can file their personal tax returns!

1099 and W2

All businesses (corporations, LLC, partnership and sole proprietors) are required to file their 1099 and W2 forms by January 31 of each year, and to provide a copy to their employees and contractors. Employees and contracts will need the W2 or 1099 to file with their own taxes.

State Income Tax Deadlines

While most states follow the federal tax deadlines, some do not. For a full explanation on state tax deadlines, including income tax, sales tax, payroll tax, quarterly estimated taxes and franchise tax deadlines see our 2020 State Tax Deadlines for 2019 Taxes. We also recommend reading about the significant changes in state sales taxes following the Supreme Court South Dakota v Wayfair decision.

Delaware Franchise Tax

Any corporation, partnership or LLC incorporated or headquartered in Delaware must pay the annual Franchise Tax by March 1 of each year. Nonprofits are not required to pay the tax, but they do need to file a Franchise Tax Report, which has a nominal filing fee.

Limited Liability Company (LLC)

If you are a Limited Liability Company (LLC) there are several ways your entity can be taxed. If you are the sole member, your entity will be considered a disregarded entity for tax purposes and all income will be listed on your personal income taxes. If you have more than 1 member you are automatically taxed as a partnership, with all the partners listing their share of the income on their personal tax returns. However, you can also elect to be taxed as an S Corporation. We recommend that you speak with your accountant or Finaloop about the best way for your LLC to elect to be taxed.

FDAP Taxes (Fixed, Determinable, Annual or Periodic Income)

If you are a foreign person or business, you are responsible for paying US taxes on any income earned in the US. The US business is required to withhold the funds and pay them to the IRS.

If you are a US business paying to a foreign person or company, you are responsible for withholding any taxes due, and filing the FDAP report with the IRS by March 16.

Does your company have any overseas owners, investors or other relationships in 2019?

If you have any foreign investors, partners or shareholders you may need to file form 5471 or 5472. Failure to timely file can cost you between $10,000 and $25,000 per form. If you receive a notice of delinquency and still fail to timely file and pay, you can be assessed additional penalties.

Foreign bank accounts

If you have any foreign bank accounts which had an aggregate of $10,000 or more during the calendar year, you are required to report it on your taxes using FinCen Form 114 also known as FBAR.

Conclusion

Tax filings and deadlines can be confusing and stressful. Reviewing your bookkeeping records, determining what qualifies as a deduction or a credit, and filling out the actual forms can take a lot of time and create a lot of stress.

Always be sure to file your taxes on time, and if you are running behind be sure to file an extension on or before the initial tax filing deadline, and always remember, an extension only applies to the deadline for filing your tax return, and does not extend your time to pay the taxes! Always be sure to actually pay your taxes by the initial tax deadline or the IRS will assess late fees and penalties.

Finaloop can help you create your financial statements, prepare a request for extension if needed, and to prepare your taxes filings allowing you to optimize your time operating and growing your business. With Finaloop, you will never have to stress about your tax filings and we will make sure you never miss a tax filing deadline again.

The information provided on this website does not, and is not intended to constitute legal, financial or tax advice. All information, content, and materials available on this site are for general informational purposes only. Readers are advised to consult with their attorney or accountant with any questions or concerns.

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