September 15 Deadline Approaching - What to Do
Sep 13, 2024Today’s episode is a must-listen for entrepreneurs and business owners nearing the crucial September 15 tax deadline. Let's delve deeper into the key points Shannon touched upon and explore some additional tips to help you stay ahead of the game.
If you're a business owner with a multi-member LLC, partnership, or S-corporation, the September 15 deadline applies to you. As Shannon highlighted, if you filed an extension for your 2023 business tax return, this is the cut-off date. Unlike individual taxpayers who often think of October 15, business returns are due a month earlier. This discrepancy is intentional, designed to ensure that businesses submit their returns first, enabling the correct filing of individual tax returns subsequently. Remember, the extension granted is for filing paperwork, not for paying taxes. There are no additional extensions available, so delaying beyond September 15 can result in penalties and interest. Additionally, if you owe taxes, interest has been accruing since the original filing deadline. Ensure you have made the necessary payments or plan to do so quickly to minimize additional charges. File your business returns first, then your personal returns. You'll likely need a K-1 form from your business return to complete your personal tax return accurately.
For business owners, quarterly tax payments are essential. The next estimated tax payment is due on September 15. These are personal tax payments made based on your business's income, a method to ensure you’re paying taxes on an ongoing basis rather than a lump sum at year-end. Quarterly estimated payments for individuals are due on April 15, June 15, September 15, and January 15. Estimated payments are generally based on the income and tax from the previous year. Check the vouchers from your 2023 tax return to confirm how much you need to pay. Shannon advises that while these deadlines are essential, cash flow issues or reinvestment priorities may take precedence. Understand your business needs and plan accordingly, but be aware that skipping payments could lead to penalties.
Shannon's practical advice extends into how best to approach the tax filing season, particularly if you're engaging with an accountant. Gather all necessary documents and financial records ahead of time. Your accountant will appreciate your organization and it will speed up the process significantly. Don't hesitate to ask your accountant questions, particularly about your quarterly tax payments and any potential estimate for Q3. Accountants are incredibly busy around tax deadlines. A little appreciation for their hard work goes a long way.
Shannon mentioned the "CFO on Demand" service, a fantastic resource for those needing more personalized guidance. This service allows you to bring your financials to a call with Shannon, where she can help you understand your financial statements and prepare for tax season comprehensively.
Navigating tax deadlines can be tricky, but with the right preparation and understanding of the requirements, you can make it a smooth process. Remember, the September 15 deadline isn't just another date on the calendar; it's a crucial checkpoint in your business's financial journey. Taking proactive steps now can save you from stress and complications later on.
If you haven't yet, tune into the full episode of "Keep What You Earn" for more in-depth insights. Shannon's professional experience as a CPA and business owner provides invaluable guidance that can help you not only meet deadlines but also strategically grow your wealth and business. Stay tuned for future episodes as Shannon delves deeper into the role of taxes in business finance and provides more tips on how to make the most of your financial opportunities. For more personalized guidance, consider reaching out via the CFO on Demand service, and don’t forget to mark your calendars for the September 15 deadline!
Remember, well-prepared is well-armed. Happy tax planning!
What you'll hear in this episode:
06:37 Attention to tax vouchers, read letters carefully.
08:05 Prepare for tax season by asking questions.
If you like this episode, check out:
Think Twice Before Forming a Multi-Owner Business
Moving to a Tax-Free State - Worth it?
A Shortcut to Business Travel Deductions
Want to learn more so you can earn more?
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Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
