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Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Do you have your small business tax strategies planned out for 2011?

Small business tax

If you don’t, you probably should get on top of it! So here are your 1st quarter tax strategies.

January:

  • Employers should prepare copies of W-2’s and give them to employees by February 1st. If digital W-2’s are given, you should post and notify recipients by Feb. 1st.
  • Monday, Jan. 3rd – If employers have not received a new Form W-5 for 2011 then advanced payments of earned income credit should be stopped.
  • Tuesday, Jan. 18th – December 2010 monthly payroll tax deposits are due if you’re not on a semiweekly deposit schedule.
  • Monday, Jan. 31st – Businesses should give Form 1099 information statements to the recipients of certain payments you made for services during 2010 as well as statements to customers who paid you more than $10,000 in any , single cash transaction during 2010.
  • Employers should file Form 941 for the 4th quarter of 2010 and deposit any unpaid taxes.

February:

  • Tuesday, Feb. 15th – January payroll tax deposit is due if you’re not on a semiweekly deposit schedule. You should begin withholding 2011 income tax from the pay of any employees who claimed exemptions in 2010 but did not give you a new Form W-4 to continue the exemptions this year.
  • Monday, Feb. 18th – Employers should send Form W-3, Transmittal of Wage and Tax Statements, to the IRS along with Copy A of all employee W-2s you issued in 20ll for calendar-year 2010.
  • Businesses should send Forms 1099 and 1096 to the IRS, a separate 1096 is required for each 1099 type.

March:

  • Tuesday, Mar. 15th – C corporations should file a 2010 calendar-year income tax return (Form ll20 or 1120-A) and pay any tax that is due. If you want an automatic six-month extension, file Form 7004, and deposit what you estimate you owe.
  • S corporations – File your 2010 calendar-year income tax return (Form 1120-S) and pay any tax that is due. Provide each shareholder with a copy of Schedule K-1 (Form 1120-S), Shareholder’s Share of Income, Deductions, Credits, etc., or a substitute Schedule K-1. For an automatic six-month extension, file Form 7004.
  • File Form 2553 (Election by a Small Business Corporation), by this date to be treated as an S corp beginning with calendar-year 20ll. If you miss this deadline, the switch generally won’t take effect until calendar-year 2012.
  • Employers should deposit the February 2011 payroll tax if you’re not on a semiweekly deposit schedule.
  • Thursday, Mar. 31st – Employers should, if forms are filed electronically, send Forms 1098, 1099 or W-2G to the IRS. Otherwise, see Feb. 28 rules. The due date for giving recipients those forms is still Jan. 31, regardless of whether you file electronically.

That’s it for the 1st quarter of 2011.

Now you’ve got your small business tax strategies to carry you into the new year! Come back on April 1st, 2011 for the second quarter strategies.

If you have any questions about tax planning, small business tax planning or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688. You may also download one of my helpful FREE eBooks.

-Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

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