As tax season approaches, it is important to be aware of several key dates and deadlines for 2022.
January 24th is the date that the IRS will re-open its e-file system. This means that even if you have all your W2s and tax documents, and you submit your tax return, the IRS will not receive and process your return prior to January 24th.
The IRS expects most electronically filed tax returns to be processed within 2-4 weeks. If you elect to have your refund direct deposited, the IRS generally will take less than 3 weeks to issue your return. The IRS urges taxpayers to file their tax returns electronically, for security purposes as well as for processing reasons. A manually filed paper tax return is expected to be processed in 6-8 weeks, but could take much longer per the IRS.
It is important to keep in mind that these guidelines are for standard tax returns that do not require manual review. As mentioned in our article last week, Tax Season is Starting Sooner Than You Think, returns that required a manual review by the IRS experienced massive delays last year. It's estimated that 6 million of these returns are still being processed from the 2020 filing season. The delayed returns were a result of errors, missing information, or items that required further manual review by the IRS.
This is the deadline that your employer must send you your W-2 for tax reporting purposes. In addition, most form 1099s are required to be issued by this deadline, with the major exception being financial institutions mailing out Form 1099-Bs for stock, bond, or mutual fund transactions in a taxable trading account.
This is the deadline for financial institutions to send out Form 1099-B to anyone with a taxable trading account with gains or losses in the account. This will be especially important this year, as “meme stocks” like GameStop and AMC rose to popularity in 2021, as well as the increased popularity of buying and selling cryptocurrencies like Bitcoin, Ethereum, or Dogecoin.
March 15th is the tax filing deadline for partnerships and S-Corporations to file their tax returns, or to request a 6-month extension of time to file the returns. This group includes S-Corporations, as well as LLCs that have elected to be taxed as a corporation.
Potentially the single most important date is April 18th, the tax filing deadline for 2022 for individuals, trusts, gift taxes, C-corporations, and reporting of foreign bank and financial accounts (FinCEN 114). Because April 15th falls on a holiday this year, the tax filing deadline is pushed back to the next available day, Monday April 18th.
Additionally, this is the deadline to request an extension to receive an additional 6 months to file your return. It is important to note, an extension to file your tax return is not an extension to pay your tax due. If you file an extension and wait to pay any tax due by October 17th, you will have late interest and penalties accruing on your amount due.
Finally, April 18th is also the deadline to pay your first quarter estimated tax payments for the 2022 tax year.
Second quarter estimated tax payments for 2022 are due by June 15th.
September 15th is the first extension season deadline dates. Partnership and S corporation returns are due on September 15th, 2022. This is also the deadline to submit the third quarter estimated tax payments for 2022.
The extended due date for trust returns is September 30th, assuming they correctly filed an extension by April 18th.
October 17th is the deadline to file individual and corporate tax returns. Any returns filed past this date, even if they were extended in April, will be subject to failure-to-file penalties.
To get started on your 2021 tax returns, or if you have questions about the deadlines, click here to schedule a meeting with us.
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