Do you know the saying, “Time keeps marching on?” As time marches, so do taxes. On the one hand, business owners can count on certain filing dates and tax requirements. On the other, businesses continue to face uncertainty as Congress continues to debate budget issues with huge tax implications. In this article, Edgewater CPA Group covers what businesses need to know about taxes for the fourth quarter of 2021, and what may be on the horizon.
First things first. Deadlines and special circumstances abound. Therefore, please don’t consider this an exhaustive list. Rather, the information provided here provides some critical dates for the fourth quarter of 2021. As always, please contact us with questions.
October 2021 Deadlines
Friday, October 15th. C-corps operating on a calendar year, and that filed six-month extensions, must file their 2020 income tax return. All taxes, interest, and penalties are due and payable at this time. Additionally, 2020 contributions to many employer-sponsored retirement plans should be made by this date.
November 2021 Deadlines
Monday, November 1st. Third-quarter 2021 tax reporting is due. Businesses must report any income tax withholding on Form 941, FICA taxes, and pay third quarter taxes. Additionally, most business (sole proprietorships, S Corps, C Corps, etc.) tax returns that filed extensions through October 15, 2021, are payable on November 1.
December 2021 Deadlines
Wednesday, December 15th. C-Corps operating on a calendar year must pay the next installment of estimated income taxes for the current year (2021).
Friday, December 31st. Final day to being a solo 401(k) for self-employed individuals.
What Businesses Need to Know for 2022
There are a lot of questions about 2022, many of which will be answered if and when the Infrastructure Bill passes. At this point, all we know is that businesses only have until December 31st to make adjustments. Does your business have a sound business tax strategy as well as a contingency plan? Many U.S. businesses are structured as pass-through entities, which means many business owners and investors could be significantly impacted, and must therefore take a proactive approach to tax and financial planning.