Critical Deadlines and Tax Changes for Small Business Owners

As the 2024 tax season approaches, small business owners must stay ahead of critical deadlines and be aware of key tax changes to ensure compliance and minimize liabilities. Here’s a breakdown of what you need to know:

Critical Dates for Monotelo Small Business Clients

January 15th: Soft close

For all small business clients that upload their complete P&L and balance sheet information to us by January 15th, we guarantee your S-Corp or partnership return will be filed by March 8th. If we do your accounting work, please make sure to have your bank statements and other supporting documents in your portal.

January 20th: Hard Close For W-2’s and 1099’s

All data for 1099 issuance and W-2’s should be uploaded to your portal or securely delivered to our office to issue 1099’s by the January 31st deadline.

January 31st: Hard Close For Corporate Tax Filing

For all small business clients who upload their complete P&L and balance sheet information to us by January 31st, we guarantee your S-Corp or partnership return will be filed by March 17th. If we do your accounting work, please make sure to have your bank statements and other supporting documents in your portal.

February 1st 

All small businesses who upload your corporate tax documents after February 1st will be automatically extended. We will do our best to get your return filed by the March 17th deadline, but we will automatically file an extension to protect you from any late filing penalties.

March 17th: Tax filing or extension filing deadline for S-Corp and Partnership returns

Please remember that filing an extension is a simple way to not incur late filing penalties, but it does not negate the obligation to pay the taxes due.

April 15th: Tax filing or extension filing deadline for C-Corp returns

Please remember that filing an extension is a simple way to not incur late filing penalties, but it does not negate the obligation to pay the taxes due.

Important Tax Deadlines for 2024

1. January 15, 2025 – Quarterly Estimated Taxes

   • The fourth quarter estimated tax payment for 2024 is due. This applies to sole proprietors, partnerships, and S corporation shareholders.

2. January 31, 2025 – 1099 and W-2 Filing Deadline

   • Employers must send W-2 forms to employees and file them with the Social Security Administration (SSA).

   • 1099-NEC forms must be sent to independent contractors and filed with the IRS.

3. March 17, 2025 – Partnership and S Corporation Tax Returns

   • Partnerships and S corporations must file their 2024 tax returns (Form 1065 and Form 1120-S, respectively) or request an extension by this date.

4. April 15, 2025 – C Corporation and Individual Tax Returns

   • C corporations file their 2024 tax returns (Form 1120).

   • Sole proprietors and single-member LLCs report business income on their personal tax returns (Form 1040).

   • The first quarterly estimated tax payment for 2025 is also due.

5. September 16, 2025 – Extended Deadline for Partnerships and S Corporations

   • If an extension was requested, this is the final deadline for filing.

6. October 15, 2025 – Extended Deadline for Individuals and C Corporations

   • Final date for filing extended tax returns for individuals and C corporations.

Key Tax Changes for 2024

1. 1099-K Threshold Revisions

   • The IRS is using a $5,000 reporting threshold for third-party payment platforms like PayPal, Venmo, and Cash App. Small businesses and freelancers should expect more 1099-K forms.

2. Section 179 Deduction Adjustments

   • The maximum deduction for equipment and software purchases has been adjusted for inflation. For 2024, this limit is $1,220,000.

3. Standard Mileage Rate Updates

   • The IRS adjusts the standard mileage rate annually. The 2024 mileage rate is $.67/mile. The 2025 mileage rate will be $.70/mile.

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The 2024 tax season brings both opportunities and challenges for small businesses. Staying informed about deadlines and regulatory updates can help ensure compliance and financial efficiency. Take proactive steps now to minimize your tax burden and maximize deductions. Maintain detailed records of income, expenses, and receipts to streamline tax preparation. Avoid penalties by calculating and paying estimated taxes on time.

These are general guidelines, and your specific circumstances may vary.

Ready to start your 2024 business return? Be sure to UPLOAD YOUR DOCUMENTS or SCHEDULE A MEETING with the Monotelo team at your convenience.

This article is a general communication being provided for informational and educational purposes only and is not meant to be taken as tax advice, investment advice or a recommendation for any specific investment product or strategy. The information contained herein does not take your financial situation, investment objective or risk tolerance into consideration. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal, accounting or tax advice from their own counsel. Any examples are hypothetical and for illustration purposes only. All investments involve risk and can lose value, the market value and income from investments may fluctuate in amounts greater than the market. All information discussed herein is current only as of the date of publication and is subject to change at any time without notice. Forecasts may not be realized due to a multitude of factors, including but not limited to, changes in economic conditions, corporate profitability, geopolitical conditions, inflation or US tax policy. This material has been obtained from sources believed to be reliable, but its accuracy, completeness and interpretation cannot be guaranteed.

LEGAL, INVESTMENT, AND TAX NOTICE. This information is not intended to be and should not be treated as legal, investment, accounting or tax advice.

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