Tax season is coming up fast. Soon enough, we’ll all be receiving our annual tax forms in the mail. Like many of us, you’ll probably want to send the information over to your accountant as you receive it, or even start your filing process before you have all your forms. However, this may not be the best thing to do. So when should you send in your information?
Individuals
Have you ever sent over your information to your accountant and weeks later you receive another form in the mail that you will need to file? In most cases, you should wait until you believe you have received all your forms. These forms might include:
Have you ever sent over your information to your accountant and weeks later you receive another form in the mail that you will need to file? In most cases, you should wait until you believe you have received all your forms. These forms might include:
- W-2
- 1099’s (B, R, S, MISC, NEC, INT, DIV)
- 1098’s (Mortgage Interest Statement, 1098-E for Student Loans, or 1098-T for Tuition)
- Brokerage Statements
However, if you receive a K-1 from a business, you should expect to receive this by March 15th, or September 15th if an extension is filed. If you receive a K-1 from a Trust, these are typically due by April 15th. As such, you may need to file an extension for your return if you do not expect to receive this in a timely manner.
If you receive tax information late, such as a K-1 in the first week of April, your accountant may be able to finish your return on time if all other information is sent in earlier. However, if all of your information is sent in when you receive a late K-1, you should expect to need to file an extension.
If you receive tax information late, such as a K-1 in the first week of April, your accountant may be able to finish your return on time if all other information is sent in earlier. However, if all of your information is sent in when you receive a late K-1, you should expect to need to file an extension.
Businesses
In many cases, information from a business’s return flows over to an individual’s tax return. Because of this, the filing deadline for businesses is usually earlier than an individual’s deadline. When preparing to have your business’s return filed, there are several items that you will want to make sure are completed or received prior to sending any information over to your accountant.
In many cases, information from a business’s return flows over to an individual’s tax return. Because of this, the filing deadline for businesses is usually earlier than an individual’s deadline. When preparing to have your business’s return filed, there are several items that you will want to make sure are completed or received prior to sending any information over to your accountant.
- Bank Reconciliations: If you are able to obtain your bank statements online, you should download your bank statements as soon as they become available
- Credit Card Reconciliations: Almost identical to your bank reconciliation, your statement should be available shortly after the end of the year, and your account should be reconciled as soon as the information becomes available.
- Inventory: If your business keeps inventory on hand, it may need to be adjusted to match you end of year counts.
- Fixed Assets: If your business has any fixed assets (property, plant, and equipment), you will want to review that you properly recorded any additions or disposals.
- Accruals: If your business utilizes the accrual basis of accounting, you will need to record the year end payroll accrual. This will adjust your wages for any wages that will not be paid until the following calendar year. You also may need to keep your books open for a couple of weeks after year end to ensure that there are not any unanticipated bills that will need to be recorded.
So when should you submit your information? The answer is, it depends! If your business only needs to complete the first four items listed above, you could have all your information ready on January 1st. However, if your business needs to make any accruals, adjustments, or expects to receive a 1099 or K-1, you should wait to receive all your information to ensure that all the business’s income and expenses are properly recorded in your financial reports.
Businesses Beware! If you have any concerns about any 1099’s you will receive, you should wait on having your tax return filed until you have received all 1099’s. The due date for furnishing 1099’s to recipients is January 31, 2023. Taking into account mail time, you should expect to receive all your 1099’s by mid-February.
If you expect to receive 1099’s, K-1’s, or any other late tax information for your business, you can send your information to you accountant as soon as it is ready. Just make sure to let them know you are expecting to receive those other forms late. Depending on what the information is, your accountant may recommend filing an extension.
Didn’t clean up your files regularly throughout the year? The following blog posts have some suggested tips for cleaning things up. These are just suggestions and not a complete list so reach out to your accountant if you need further assistance:
Businesses Beware! If you have any concerns about any 1099’s you will receive, you should wait on having your tax return filed until you have received all 1099’s. The due date for furnishing 1099’s to recipients is January 31, 2023. Taking into account mail time, you should expect to receive all your 1099’s by mid-February.
If you expect to receive 1099’s, K-1’s, or any other late tax information for your business, you can send your information to you accountant as soon as it is ready. Just make sure to let them know you are expecting to receive those other forms late. Depending on what the information is, your accountant may recommend filing an extension.
Didn’t clean up your files regularly throughout the year? The following blog posts have some suggested tips for cleaning things up. These are just suggestions and not a complete list so reach out to your accountant if you need further assistance:
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