deadline is fast approachingIndividuals. Your deadline to file is October 15.
Business Owners. Your deadline to file is September 15. Continuing on from yesterday, we refer back to the IRS to answer more What If's.
What if my employer goes out of business or into bankruptcy? Your employer must provide you with a Form W-2 showing your wages and withholdings for the year by January 31 of the following year. For example, if you were employed during 2013, your employer should provide you with a W-2 for 2013 by Jan. 31, 2014. You should keep up-to-date records or pay stubs until you receive your Form W-2. If your employer or its representatives fails to provide you with a Form W-2, contact the IRS and we can help by providing you with a substitute Form W-2. If your employer is liquidating your 401(k) plan, you have 60 days to roll it over to another qualified retirement plan or IRA. For more information, see Publication 4128, Tax Impact of Job Loss. What if I close my own business? If your business is no longer operating, you still are responsible for filing all required tax returns for your business by the due dates. In addition, if you had employees, you must file all required employment tax returns, including Forms 940, 941, 943 or 944. Both business and employment taxes should be paid when due. But, if you are not able to pay in full, contact the IRS immediately to discuss your options. For more information, see Starting, Operating or Closing a Business. What if I withdraw money from my IRA? Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10 percent additional tax penalty. There are exceptions to the 10 percent penalty, such as using IRA funds to pay your medical insurance premium after a job loss. For more information, see Publication 590, Individual Retirement Accounts. What if my 401(k) drops in value? Generally, you can not claim a capital gains loss on your retirement accounts that already are receiving favorable tax treatment. The only time you would have a loss is when you receive a distribution that had previously been taxed. For more information, see Publication 575, Pension and Annuity Income. Thinking of starting your own business? Or already have? Here is one important thing to check off your To Do list.
Write a Business Plan. Here's why... If your company experiences a loss in revenue you may find that you are limited on the deductions you can claim due to the hobby loss rule. That's right, all your hard work and efforts to start your business can be viewed as a leisurely activity...unless you have a business plan that carefully and thoroughly documents your company's plan to increase profitability in the next 3-5 years. Do you have a documented Marketing Plan? Market Analysis? Mission Statement? Financial Projections? These are just a few things your Business Plan should include. For more information, visit: http://www.irs.gov/file_source/pub/irs-pdf/p535.pdf or contact us for assistance in writing your Business Plan. |