By Susan Crockett, Tax Senior Associate | Family, Executive & Entrepreneur Advisory Services team
Tax items you need to know for year end 2019
Estimated Individual Income Tax Payments
The final installment date for 2019 estimated tax payments is January 15, 2020. Mail your Federal and state estimated tax payments by that date. While the new Federal Schedule A limitation on state income tax deduction eliminates much of the benefit, do mail state estimated tax payments no later than December 31, 2019, if you want to deduct the payment on your 2019 tax return.
The following payroll returns are due January 31, 2020:
- Provide copies of Form W-2 to employees
- File Form W-3 and Forms W-2, Copy A, with Social Security Administration
- File Payroll tax returns with appropriate agency:
- Form 941, Employer’s QUARTERLY Federal Tax Return (or Form 944, Employer’s ANNUAL Federal Tax Return)
- Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
- Form VA-6, Employer’s Annual or Final Summary of Virginia Income Tax Withheld (or annual withholding report for applicable state)
- Form VEC-FC-20/21, Employer Quarterly Payroll and Tax Report (or SUTA report for applicable state)
- File Form 945, Annual Return of Withheld Federal Income Tax (if income tax was withheld on non-payroll items)
Form 1099 Information Returns
As a reminder, Form 1099 reports various types of income. Payments for non-employment compensation payments in Box 7 are due January 31, 2020.
- Provide Form 1099-MISC to unincorporated independent contractors to whom you have paid $600 or more for services used in a trade or business during calendar year 2019. This form is also used to report payments to attorneys for more than $600, regardless of legal classification (unincorporated, LLC or Corporation)
- File Form 1096 and Forms 1099-Misc, Copy A, with the Internal Revenue Service
Forms 1099 which report payments other than non-employment compensation are due February 28, 2020.
- Provide Form 1099 to recipients. The type of Form 1099 depends on the amount and type of payment made.
- File Form 1096 and Forms 1099 with the Internal Revenue Service.
IMMEDIATE ACTION REQUIRED: It is recommended that businesses review their records prior to December 31, 2019 to make certain that a Form W-9 is on file for any contractor needing a Form 1099. Best practice would be to collect the Form W-9 during the year and prior to payment.
Local Tax Reporting
Business License Renewal Applications for License Year 2020 must generally be filed and taxes paid by March 1, 2020. Some localities, such as Hanover County, do not have a business license while other localities require a license for just certain types of businesses. Contact your locality for more information. Keep in mind that if your business operates in multiple localities, multiple licenses may be required.
Returns of Business Tangible Personal Property have filing dates which vary depending on the locality:
- Chesterfield County March 1, 2020
- County of Hanover May 1, 2020
- County of Henrico March 1, 2020
- City of Richmond March 1, 2020
IMMEDIATE ACTION REQUIRED: Since the tax due is calculated on the assessed value of assets available for use as of January 1, 2020, the asset listing should be reviewed each year to confirm that assets disposed of during the year have been removed by December 31 and assets acquired have been added.
- IRS Publication 15, Employer’s Tax Guide
- IRS General Instructions for Certain Information Returns
- IRS Instructions for Form 1099-Misc
- IRS Estimated Tax Payments
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.