Tax Season 2024: Get Prepared!

Estimated tax payments are quarterly payments made to the IRS and state tax authorities by individuals and businesses who expect to owe taxes that are not withheld from other sources of income, such as wages or salary. Self-employed taxpayers, business owners, investors, or receive income without withholding are typically required to make estimated tax payments.

As a crypto investor, you may need to make estimated tax payments if you receive income from trading, selling, or exchanging cryptocurrencies and do not have taxes withheld from these transactions. It's advisable to consult with a tax professional to determine your tax obligations based on your specific circumstances.

Failure to make estimated tax payments or underpayment of taxes may result in penalties and interest assessed by the IRS. These penalties can vary depending on the amount of underpayment and the taxpayer's circumstances.

Yes, taxpayers can request an extension to file their tax return using IRS Form 4868. This extends the filing deadline for up to six months but does not extend the deadline to pay any taxes owed. Taxpayers must estimate and pay any taxes due by the original deadline to avoid penalties and interest.

If you cannot pay your taxes in full by the deadline, you should still file your tax return on time and pay as much as possible to reduce penalties and interest. You may also be able to set up a payment plan with the IRS to pay the remaining balance over time.

There are specific IRS guidelines for reporting cryptocurrency transactions on tax returns. These guidelines include reporting capital gains or losses from cryptocurrency sales or exchanges and any income earned such as mining, staking, or airdrops of cryptocurrencies. Due to the complexity behind calculating crypto gains and losses, we recommend planning ahead of any deadlines.

A tax deadline refers to the date by which tax returns must be filed, while a tax payment deadline is when any taxes owed must be paid. It's important to differentiate between the two to avoid penalties and interest for late payments.

If you did not receive important tax documents such as your W-2, 1099, or K-1 by the deadline, you should first contact the issuer to request a copy. If you still do not receive the forms in time, consider filing an extension using Form 4868. This will give you additional time to receive and accurately report your information. If, even after an extension, you do not receive the forms, then you may use Form 4852 as a substitute for Form W-2 or Form 1099-R to estimate your income and withholdings for filing your tax return. Remember, filing an extension extends the time to file your return but not the time to pay any tax due.

If you cannot file your tax return by the deadline and forgot to file an extension, it's important to file your return as soon as possible to minimize penalties and interest. Failure to file penalties is generally more severe than failure to pay penalties, so filing late is better than not.

State filing deadlines may vary from the IRS deadline, so it's important to check with your state's tax agency for specific deadlines. Some states may have different deadlines for filing tax returns or making estimated tax payments.

The requirements for filing extensions and making extension payments to state tax authorities vary by state. You should check with your state's tax agency for specific guidelines and requirements.

The deadline to amend a tax return is generally within three years from the date the original return was filed or within two years from the date the tax was paid, whichever is later. However, there may be exceptions to this deadline for certain circumstances, so it's best to consult with a tax professional for specific guidance.

If you receive a tax form or discover different information after filing but before the tax filing deadline, you generally do not need to file an amended return immediately. Instead, you can submit a superseding return. A superseding return is filed within the original filing period and effectively replaces your original return. This allows you to correct errors or update information without going through the amendment process.

If you discover new information or receive additional tax forms after the filing deadline, you must file an amended return using Form 1040-X. This form is used to make corrections to a tax return that has already been filed, and the deadline has passed. It's important to file this form as soon as possible to correct any inaccuracies in your tax return.

It's recommended to provide your accountant with all necessary documents and information before the tax filing deadline. Aim to get your documents to your accountant at least a few weeks before the deadline to allow ample time to prepare and review your tax return. Early submission can also help avoid last-minute rush and errors.

For businesses that file Form 1120-S or Form 1065, the individual partners or shareholders should use Form 1040-ES to make their estimated tax payments. This is because the income from S Corporations and Partnerships is typically passed through to the individual partners or shareholders and is taxed at their tax rates. Each partner or shareholder is responsible for making estimated tax payments on their share of the business income, as these types of businesses do not pay tax at the corporate level.