Winter 2023 Tax Deadlines and IRS News

Winter Tax Deadlines

January 16, 2024

• Due date for 4th installment of 2023 individual estimated tax. Consult with your CPA if any payments should be made before 12/31.

January 31, 2024

• Due date for employers to provide W-2 statements to employees and file Forms W-2 with the SSA.
• Due date for payers to provide Form 1099-NEC to recipients and to IRS.
• Employers must file 2023 federal unemployment tax returns and pay any tax due.

February 28, 2024

• Payers must file most 1099 Forms (-MISC, -DIV, -K, etc.), 1095-B, and 1095-C with the IRS (April 1 if filing electronically).

March 1, 2024

• Farmers and fishermen who did not make 2023 estimated tax payments must file 2023 tax returns and pay taxes in full to avoid a penalty.

March 4, 2024

• Due date for employers to furnish Form 1095-B and 1095-C to employees.

What the IRS is Up to

New Mandatory Business Reporting for the U.S. Treasury’s FinCEN Department

Beginning in 2024, businesses have a new reporting requirement as part of the Corporate Transparency Act. Domestic and foreign corporations, LLCs, and other entities must provide identifying information in a Beneficial Ownership Information (BOI) report and file with FinCEN. Existing businesses created before January 1 have until January 1, 2025 to file an initial BOI report, while new businesses created after January 1 will have 30 days to file an initial BOI report. Visit our website for more comprehensive details and exclusions.

**Update: As of November 29, 2023, FinCEN finalized an update to the reporting rules that new businesses formed after January 1, 2024 will now have 90 days to file an initial BOI report.**

ERC Processing Suspended

In September, the IRS implemented an immediate moratorium on processing new claims for the Employee Retention Tax Credit (ERC) through at least the end of the year. This is in effort to protect small business owners from an increase in ERC scams. Claims filed prior to the moratorium will continue to be processed, though may be delayed due to

stricter compliance reviews. The IRS has shared steps if a business owner wishes to withdraw a claim, especially if the business is concerned about an ineligible claim.

IRS Announces 4th Quarter Interest Rates, 2024 Social Security Increases

The IRS announced increased interest rates for the 4Q 2023. For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. The main rate for corporations rises to 7%. For 2024, the potential maximum income subject to Social Security taxes is increasing to $168,600, up $8,400 from 2023. For retired workers receiving Social Security retirement benefits, the estimated average monthly benefit will be $1,907 per month in 2024, an average monthly increase of $80.