Business Taxes Archives - CironeFriedberg, LLP

Important January and February Tax Deadlines

December 28, 2022 by David Moseman CPA

As you head into a new year, mark these dates on your calendar. There are tax deadlines for both individuals and businesses early in the year.

Important 2023 Tax Deadlines and Dates for Individual Filers

Individual Filers are employees, retirees, self-employed individuals, independent contractors, and gig or contract workers. Be sure to work closely with your CPA to understand how tax deadlines may affect your personal situation.

January 17 – Estimated Tax payments for 4^th quarter 2022 are due. This covers the time period of September 1 through December 31, 2022. Self-employed persons or those earning other income without tax withholding make quarterly estimated tax payments. Work closely with your CPA to be sure you are not at risk of for penalties for improper payments.

January 31 – Employers send W-2 forms. The IRS requires employers to send employees a W-2 no later than January 31 following the close of the tax year.

January 31 – 1099 forms must be sent. 1099 forms, including 1099-NEC,1099-MISC, and 1099-K are sent to those earning income as independent contractors, gig workers, or from self-employment. These forms are also sent to those receiving income from interest, dividends, prize winnings, rents collected, royalties, or brokerage accounts.

February 15, 2023 – Reclaim exemption from withholding. If you chose to claim an exemption from withholding taxes from your paycheck last year by filing a Form W-4, you’ll need to re-file the form by February 15th. You need to file this exemption request if you expect to have no tax liability this year and also had no tax liability in the prior year.

Important Tax Deadlines and Dates for Businesses

Businesses include Partnerships, LLCs, C Corps (using Form 1120), and S Corps (using Form 1120S)

January 16, 2023 – 4th Quarter 2022 estimated tax payment is due. This covers the time period of September 1 through December 31, 2022. Work closely with your CPA to be sure you are not at risk of for penalties for improper payments.

January 31, 2023 – Employers send W-2s forms to employees. The IRS requires employers to send employees a W-2 no later than January 31 following the close of the tax year.

January 31, 2023 – Send certain 1099 forms. You must send 1099 forms, including 1099-NEC,1099-MISC, and 1099-K to those earning income as independent contractors. These forms are also sent to those receiving income from interest, dividends, prize winnings, rents collected, royalties, or brokerage accounts.

Have Questions?

If you need assistance or have any questions on the information in this article, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Stamford) or email us at info@cironefriedberg.com.

Advising Business Owners During Volatile Economic Times

November 6, 2022 by David Moseman CPA

The landscape of accounting and taxation has been very dynamic over the past several years. Tax reform, the adoption of digital currency, pandemic-induced debt, supply chain disruptions and workforce changes are layered upon an already complex and regulated industry.

The purpose of tax planning before you are in the throes of tax season is to minimize your tax liability. At CironeFriedberg, our experienced CPAs take a holistic view of the impact of new and existing tax programs and regulations that can be implemented to optimize your tax situation.

CironeFriedberg clients are C corporations, S corporations, Limited Liability Companies (LLCs), partnerships, and sole proprietors across various industries. We assist business clients to structure transactions in the most advantageous tax manner to help minimize the tax impact and take advantage of tax benefits.

“Our business clients in all industries are working to improve product and service delivery while controlling costs in a very challenging economic environment. We listen to them and approach each client as a having a unique set of needs and challenges. Our team collaborates in ways to find and implement creative approaches to deliver the best solutions possible.”

– Tony Cirone, CPA

Business Mergers, Acquisitions, Sales, and Expansion

Business owners and family businesses rely on us to advise them on business structure, acquisitions, sale of a business, and compensation plans for management and owners. When faced with growing through acquisition or transferring a business to family members, they seek our advice. They know CironeFriedberg has their back.

At CironeFriedberg our Certified Valuation Analysts offer specialized knowledge and expertise in valuations as required for purchase, sale, merger, gifting or tax election requirements. Our valuation professionals are trained in current professional standards and hold Certified Valuation Analyst (CVA) and Accredited in Business Valuation (ABV®) certifications.

Our unique expertise in Litigation involving shareholder and partner disputes, dissenting shareholder actions, and related expert testimony is also in high demand.

Continually Changing and Evolving Tax Laws

Our experienced tax CPAs stay up-to-date and informed on complex and constantly changing tax regulations. David Moseman, CPA, is one of the partners in charge of tax services at CironeFriedberg and oversees a team of experienced accounting professionals with excellent critical thinking skills.

Tax laws are complex and continually changing. Our CPAs specialize in Federal and state tax laws and regulations and are committed to delivering accurate and timely tax filings. At CironeFriedberg, we put our clients’ needs front and center. We listen. Our team has the technical expertise and experience required to ensure efficient tax compliance and effective tax planning for each client.

“We are constantly expanding our knowledge to proactively meet our clients’ needs. There are new IRS regulations affecting many areas such as cryptocurrency and digital currency taxation. We stay on top of these changes and are continually expanding our expertise and capabilities to serve the needs of new clients including those stepping into the Cannabis industry.”

– David Moseman, CPA

Careful tax planning is critical for business success in today’s volatile economy. In a complex regulatory environment with global pressures and challenges beyond our control, strategic tax planning is necessary to achieve business success and preserve and grow wealth.

Important Tax Deadlines

September 9, 2022 by David Moseman CPA

Important Tax Deadlines

Estimated Quarterly Tax Payments

For income you earned June 1 – August 31, 2022, your tax payment deadline is September 15, 2022.

For income you earn September 1 – December 31, 2022, your tax payment deadline is January 17, 2023.

Individual Income Tax Returns on Extension

Those taxpayers who received an extension of time to file their 2021 individual income tax returns have until October 17, 2022, to file their returns and pay.

For guidance on how this may affect your situation, reach out to one of our tax advisors at CironeFriedberg. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Stamford) or email us at info@cironefriedberg.com.

Is an S Corp the Right Structure for Your Business?

August 22, 2022 by David Moseman CPA

S corporations are entities that can pass corporate income, losses, deductions and credits through to shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed a tax at their individual income tax rates. The Tax Cuts and Jobs Act (TCJA) also gives S corporation owners the potential to qualify for a 20% deduction on income (qualified business deduction).

An S corporation offers investment opportunities from the sale of stock and the coveted protection of limited liability. This means that company directors, officers, shareholders and employees enjoy limited liability protection. Your business can continue to exist even if the owner leaves or dies. It sounds like a good deal, but not every company can be an S corporation.

You must meet the following requirements:

Be a domestic corporation.
Have only allowable shareholders: individuals and certain trusts and estates, but not partnerships, corporations and nonresident aliens.
Have no more than 100 shareholders.
Have only one class of stock.
Not be an ineligible corporation, such as certain financial institutions, insurance companies and domestic international sales companies.

If you meet these qualifications, you have to take a number of formal steps to become an S corporation. You have to choose a legal name and reserve it, apply for a business license and other certificates specific to your industry, and obtain an Employer Identification Number. Rules may vary depending on the jurisdiction. Also, despite the pass-through advantages, S corporations still have to meet certain responsibilities. They must prepare and file income tax and estimate tax forms. (Some of these are especially complicated.) They also are responsible for Social Security, Medicare taxes, and federal unemployment taxes on wages, and any relevant excise taxes. The individual S corporation shareholders are responsible for income and estimated taxes.

While there’s a lot to love about an S corporation, there are a few things to consider:

You cannot expand with international ownership — citizens and permanent residents only.
With the 100-shareholder limit, there may be practical limits on growth.
The IRS can be fussy: Any errors among the various filing requirements can inadvertently result in the termination of S corporation status. Indeed, the IRS typically looks very closely at S corporation filings, making sure there’s a clear line between salaries and dividends, as they are taxed differently. Be prepared for detailed IRS scrutiny in this area.

The S corporation is just one of a number of ways to organize your business. Is it right for you, or is there another way that would be more appropriate? The experienced advisors at CironeFriedberg can help walk you through the financial and practical details as they affect your personal situation.

IRS Increases Interest Rates for Quarterly Payments

August 16, 2022 by David Moseman CPA

Effective October 1, 2022, the Internal Revenue Service (IRS) will increase interest rates for the calendar quarter. For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1. For corporations, rates vary.

Here are the new rates.

FOR INDIVIDUALS

6% for overpayments for individuals (payments made in excess of the amount owed)

FOR CORPORATIONS

5% for corporations (payments made in excess of the amount owed)
3.5% for the portion of a corporate overpayment exceeding $10,000
6% for underpayments (taxes owed but not fully paid)
8% for large corporate underpayments

Generally, for a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points, and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point. The interest rates announced today are computed from the federal short-term rate determined during July 2022.

IRS Announcement

Connecticut’s Sales Tax Holiday in August

August 10, 2022 by David Moseman CPA

Annually, Connecticut offers a sales and use tax exclusion during a one-week period in August for clothing and footwear costing less than $100 per item.

This “sales tax holiday” occurs during the third Sunday in August through the following Saturday. This year, it occurs Sunday, August 21 through Saturday, August 27.

Note: Tax does not apply to the sale of an article of clothing or footwear costing less than $100 sold during the exclusion week by mail, telephone, or over the Internet.

For more information, visit the CT Department of Revenue with this link.

Or, as posted on the Connecticut Department of Revenue Services (DRS) website, you can call DRS during business hours, Monday through Friday:

1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only); or
860-297-5962 (from anywhere)

TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.

If you need assistance or have any questions on sales and use tax, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Stamford) or email us at info@cironefriedberg.com.

Important January and February Tax Deadlines

Important 2023 Tax Deadlines and Dates for Individual Filers

Important Tax Deadlines and Dates for Businesses

Have Questions?

Advising Business Owners During Volatile Economic Times

Important Tax Deadlines

Important Tax Deadlines

Is an S Corp the Right Structure for Your Business?

IRS Increases Interest Rates for Quarterly Payments

Connecticut’s Sales Tax Holiday in August

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