A word to the wise: The IRS moves slowly. If a business makes an error in reporting, the IRS may not catch it for a year or 2. But they may still charge late fees and interest when they finally audit your business.
To stay out of hot water pay attention to the following:
Income tracking: Copy your checks and clearly identify deposits; with QuickBooks it is fairly easy to produce monthly reports, so at year-end the information will be up to date.
Payroll: It is worth the money to hire a payroll service to pay employees, do the government deposits, and prepare the tax reports. Ask for copies of reports to ensure the payments to the government are going in on time.
1099 workers: Get their address and Social Security number when you hire them. It is also a good idea to ask for a Certificate of Insurance, to see whether or not they are licensed and insured. The 1099 is for individuals paid over $600 during the year.
Tax Reporting Deadlines:
January 31st: Give out 1099’s to those who have been paid over $600. Give out W-2’s to all employees.
March 15th: IRS Corporate tax returns due (if using a CPA, you should get them the information by end of February)
April 15th: IRS Personal tax returns due
For more deadlines visit the IRS website or the link below: