IRS TAX Calendar

2015

Never miss a tax deadline again! This IRS calendar provides Tax reminders and instructions for Small Businesses and self-employed.

Tax Rules

Read the Current Newsletter for information on these topics:

One major misstep many new business owners make is not adequately budgeting for taxes due. If you can’t pay the full amount, it’s important to at least file your tax forms by their due dates. If you cannot pay all your taxes immediately, pay as much as you can now. By filing on time and by paying what you can, you will reduce the amount of interest and penalty you will owe.

You may be able to make monthly payments through an installment agreement. The IRS can set up a direct debit from your financial institution or a payroll deduction from your wages or salary.

Your tax accountant can help you set up a payment schedule or installment.

Note: In general, the penalty rate is ½ of 1 percent (.5 percent) each month tax is paid late. The penalty rate may increase to 1 percent, or the rate may decrease to ¼ of 1 percent (.25 percent) while an approved Installment Agreement is in effect. Regardless of the penalty rate, the total penalty cannot exceed 25 percent. However, you must have filed the tax return on time.

ESTIMATED TAX PAYMENTS: SELF-EMPLOYED INDIVIDUALS
Estimated tax is used to pay income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.

If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.

For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. Using the EFTPS system is the easiest way to pay your federal taxes— for individuals, as well as businesses. Make ALL of your federal tax payments including federal tax deposits (FTDs), installment agreement, and estimated tax payments using Electronic Federal Tax Payment System (EFTPS).

PENALTIES
Here are eight important points about the two different penalties you may face if you file or pay late:

1. If you do not file by the deadline, you may incur a failure-to-file penalty. If you do not pay by the due date, you could incur a failure-to-pay penalty.
2. The failure-to-file penalty is generally more than the failure-to-pay penalty. So it is important that you file your tax return on time and pay as much as you can–even if you cannot pay all the taxes you owe–then explore other payment options. The IRS will work with you.
3. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.
4. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
5. If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.
6. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure-to-pay penalty if the remaining balance is paid by the extended due date.
7. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
8. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.