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Prep the End of Fiscal Year 2019

1/ Check your Withholdings and Quarterly Payments

In order to avoid underpayment penalties, check your 2019 withholdings and payments made during the year. Both at the federal and state level.

2/ Tax Status for 2019

You filed 2018 either as single taxpayer, married filing a joint return, or married filing a separate return. If your situation changed during the year 2019, or if you are thinking about changing your status early 2020, it is still time to take action before the end of 2019 to see what will be the optimum status and best fit for your tax situation.

3/ Donations

If you donated to charities, it is still time to send your gifts before 12/31! Also understand that you will be able to take a deduction if your total itemized deductions are above a certain threshold. An estimation can be made.

4/ Foreign Properties

If you owned foreign properties in 2019, you might want to make sure you optimized your assets. Also, if you owned foreign bank accounts in 2019, you might need to be compliant with the regulations and report such accounts.

5/ Business Owners

It is this time of the year to foresee what will be your tax liability for 2019 and make sure you are compliant with laws and regulations.

2020 is around the corner and we want you to wind up 2019 the best way possible!

The IRS decided to extend the 2021 tax deadline for the 2020 individual tax returns from April 15, 2021 to May 17, 2021. Penalties and

interest will start May 18, 2021.

If you are owed a refund, we recommend you file your return as soon as possible. Refund can take up to 21 days if you file electronically. We can help!

The extension of the tax deadline is for Federal only. Each State will decide to follow the Federal tax deadline. You should consult your state tax department or your tax advisor for more information.

Information returns are due to the IRS at the beginning of each fiscal year. Whether you've made payments to

thirds parties or to employees, you might need to report these payments. Various forms exist (W-2, W-2G, 1042-S, 1094-C, 1095, 1097, 1098, 1099 1099-NEC, 3921, 3922, 5498, 8027) with various deadlines and rules. We focus this short article on information returns 1099.
As we approach January 31st, we are dealing with a new information return: Form 1099-NEC
As we approach January 31st, we are dealing with a new information return: Form 1099-NEC. NEC stands for Non-Employee Compensation. Typically, contractors paid during the fiscal year 2020 will receive a 1099-NEC.

As a payor, your duty to the IRS is to send a report 1099 with information regarding payments above $600 in the aggregate made to third parties during the year. The deadline is January 31, 2021, and on form 1099-NEC the IRS did not allow an extension to file (exceptions apply).

It is highly recommended you keep a copy of W-9s requested to your business partners during the course of the year. W-9s should be updated each fiscal year, so you can report the information accurately to the IRS.

Regarding the redesigned form 1099-MISC, and following the IRS instructions, the recipients should receive notice by January 31, 2021 and you must file the form with the IRS no later than February 28, 2021 (or March 31, 2021 if filing electronically). You might as well request a 30-day extension to file.

Failure to comply with the information reporting may trigger penalties.

Contact your legal/tax advisor for additional questions and to help you comply with the information returns this year.

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