Upcoming Tax Deadlines

2023 Tax

Jan 8

Now that the end of the year has passed (hopefully you were able to implement some year-end tax planning), it’s important to focus on the upcoming tax deadlines. Although it’s only January, there are certain considerations and requirements to consider before the April 15th individual tax deadline.

4th Quarter Estimated Payment

If you have yet to make an estimated payment for the 4th quarter of 2023, you have until January 16, 2024 to do so. Be sure to make considerations for both federal and state estimated tax payments.

Issuance of 1099s

If you need to issue a 1099-NEC or 1099-MISC to a backer or betting partner, you must do so before January 31, 2024 (1099-NECs) or March 31, 2024 (1099-MISCs). These forms can be filed electronically or physically mailed. For ease, I recommend filing these forms electronically. There are a number of websites that offer DIY 1099 filings (or you can have your tax professional submit them). Either way, make sure both the IRS and the intended recipient receive a copy!

Remember to keep a copy of all forms for records. This includes a completed Form W-9 and Form 1099 for each backer, as well as Form 1096.

Release of 2023 Tax Forms

The 2023 filing season will begin once the IRS releases finalized forms. This is scheduled to occur on January 29, 2024. Although many will be able to file their returns at this point, there will still be certain forms that remain unavailable.

It is important to check on the status of forms included with your filing to determine the timing of your return. This includes your state and local return, as certain states and localities will require more time to finalize 2023 forms.

Partnership and S-Corporation Returns

The filing deadline for partnerships (Form 1065) and S-Corporations (Form 1120-S) is March 15, 2024. If you are not able to gather the necessary information in time, you must file Form 7004 (extension of time to file) on or before the deadline.

Individual and C-Corporation Returns

The filing deadline for individuals (Form 1040) and C-Corporations (Form 1120) is April 15, 2024. If you are not able to gather the necessary information in time, individuals must file Form 4868 and C-Corporations must file Form 7004 (extension of time to file) on or before the deadline.

The individual deadline applies to recreational gamblers and those professional gamblers filing as self-employed on Schedule C.

Payment of 2023 Tax

Any individual income tax owed for the 2023 tax year is due on April 15, 2024. Even if you do not file your tax return by the deadline, any tax owed must be paid on or before April 15th. If you file an extension, this only extends the amount of time you have to file your return.

If you plan to extend your return, please submit a payment based on your best estimate of tax owed for the year. There are a number of ways to make this payment and you can always contact your tax professional to help determine the appropriate payment amount.

Retirement Contributions

Thanks to favorable IRS deadlines, there are a number of ways to contribute to a retirement account after year-end:

Solo 401(k): If you did not designate any employee contributions in 2023, it is not too late to make employer contributions. Employer contributions for 2023 can be made up until the due date of the tax return, including extensions
SEP IRA: This plan only allows for employer contributions. Similar to the Solo 401(k), employer contributions for 2023 can be made up until the due date of the tax return, including extensions

If you are unsure about contributing to a Solo 401(k) or SEP, I recommend extending your return. This will give you an additional six months to determine if (and how much) you wish to contribute.

Traditional and Roth IRA: The deadline to contribute for 2023 is the tax filing deadline (April 15, 2024). Before contributing, make sure you are aware of the thresholds to determine eligibility (Roth IRA) or deductibility (Traditional IRA)
Health Savings Account (HSA): HSAs are not “traditional” retirement accounts, but are an important tax planning tool. Contributions for 2023 can be made up until the tax filing deadline (April 15, 2024)

1st Quarter Estimated Tax Payment

It’s important to not lose focus of 2024 while ensuring your 2023 return is timely filed. This includes making your first estimated tax payment. The 1st quarter estimated payment deadline is April 15, 2024. Be sure to make considerations for both federal and state estimated tax payments.

Foreign Bank Account Reporting (FBARs)

The FBAR deadline is October 15, 2024. Unlike income tax returns, taxpayers do not need to apply for an extension of time to file an FBAR. FinCEN allows for an automatic six-month extension to file.

For more information regarding FBARs, you can refer to this blog from last year.

Contact Your Tax Professional

There is no specific deadline to contact your tax professional, but I recommend doing so sooner rather than later. This will help both parties establish timelines for the tax preparation process. It will also give you adequate time to implement any advice or strategies.

As the deadlines above approach, your tax professional will have limited availability. If you haven’t already, it is best to take advantage of this time while it is available.