New year begins with delayed filing season, continuing tax reform discussions and new IRS leader
Taxpayers will experience a short delay to the start of the 2014 filing season, but passage of the Bipartisan Budget Act of 2013 averted the possibility of an IRS shutdown in January. The budget agreement, however, did not include any tax provisions, and tax reform must find a new vehicle to move forward in Congress. Meanwhile, the IRS starts 2014 with a new leader, who promised to restore public trust in the agency after a troubled 2013.
Higher-income taxpayers brace for higher tax bill with 2013 returns
Many higher-income taxpayers will be in for a big surprise when they finally tally up their 2013 tax bill before April 15th. The higher amount of taxes that may be owed will be the result of the combination of several factors, the cumulative effect of which will be significant for many. These factors include a higher income tax rate, a higher capital gains rate, a new net investment income tax, and a new Medicare surcharge on earned income, as well as a significantly reduced benefit from personal exemptions and itemized deductions for those in the higher income tax brackets.
Keeping good records for tax season and beyond – some guidelines
Good recordkeeping is essential for individuals and businesses before, during, and after the tax filing season.
How do I?… use the 2014 standard mileage rates?
Taxpayers who use their automobiles for business or the production of income can deduct their actual expenses for use of an automobile (including the use of vans, pickups, and panel trucks) that the taxpayer owns or leases. Deductible expenses include parking fees, tolls, taxes, depreciation, repairs and maintenance, tires, gas, oil, insurance and registration.
FAQ . . . What 2013 tax year deadlines extend into 2014?
The definitive arrival of the New Year does not spell doom for all tax savings opportunities for 2013. A few options remain to taxpayers:
January 2014 tax compliance calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of January 2014.
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of January 2014.
January 2
Employers. Semi-weekly depositors must deposit employment taxes for payroll dates December 25–27.
January 3
Employers. Semi-weekly depositors must deposit employment taxes for payroll dates December 28–31.
January 8
Employers. Semi-weekly depositors must deposit employment taxes for payroll date January 1–3.
January 10
Employers. Semi-weekly depositors must deposit employment taxes for payroll date January 4–7.
Employees who work for tips. Employees who received $20 or more in tips during December must report them to their employer using Form 4070.
January 15
Employers. Semi-weekly depositors must deposit employment taxes for payroll date January 8–10.
Individuals. Individuals that did not pay their income tax for the year through withholding (or did not pay in enough tax through withholding) may make a final payment of estimated tax for 2013, using Form 1040-ES, Estimated Tax for Individuals.
January 17
Employers. Semi-weekly depositors must deposit employment taxes for payroll date January 11–14.
January 23
Employers. Semi-weekly depositors must deposit employment taxes for payroll date January 15–17.
January 24
Employers. Semi-weekly depositors must deposit employment taxes for payroll date January 18–21.
January 29
Employers. Semi-weekly depositors must deposit employment taxes for payroll date January 22–24.
January 31
Filing Season. The 2014 filing season officially begins.
Employers. Semi-weekly depositors must deposit employment taxes for payroll date January 25–28.
Information reporting. All employers must provide their employees with their copies of Form W-2 for 2013.
Payers of gambling winnings. Payers of reportable gambling winnings or withheld income tax from gambling winnings for 2013, must provide the winners with their copies of Form W-2G.
Nonpayroll items. Those who withheld income tax withheld for 2013 on all nonpayroll items, including backup withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members, file Form 945 and deposit or pay any undeposited tax under the accuracy of deposit rules.
Social Security/Medicare taxes. Employers who withheld Social Security and Medicare taxes report the withholding for the fourth quarter of 2013 on Form 941. Small employers may report withholding for the entire year using Form 944.
February 5
Employers. Semi-weekly depositors must deposit employment taxes for payroll dates January 29–31.
If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.
