Our firm’s main focus is to provide our clients with timely and accurate financial information. We take pride on building relationships with our clients that last. Our success as a firm derives solely from our client’s continuous success. Our firm is committed to providing our clients with the personal attention and focus on their business that they deserve. It is also our goal to work closely with our client’s lending institution. Your loan officer and lending institutions understanding and receiving of your financial information in a timely matter is a major part of your dairy’s success.
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Important Tax Return Information
- Individuals and partnerships – The returns must be filed by the fifteenth day of the fourth month after the close of the tax year.
- Trusts - The returns must be filed by the fifteenth day of the fourth month after the close of the trust's tax year. Thus, for a trust with a tax year ending on December 31, the due date is April 15 of the following year
- Corporations – The return must be filed by the fifteenth day of the third months after the close of the tax year
How and when, to use this guide to avoid any penalties
- You look back to a specific 12 month period called the look back period.
- Your look back period is the 12 month period ending on June 30th from last year.
- For example, to figure out your deposit schedule for the current year you need to look back to those four previous quarters ending on June 30th of last year.
- Gee, why don't they just look at January through December?
- By looking at these quarters the IRS can accurately see your tax liability for a full year knowing that any corrections have been made by that time.
- If you are a new employer and had no employees during the look back period, or if all your taxes total $50,000 dollars or less for the period, you are a monthly depositor.
- If your total taxes are more than $50,000 dollars, you make deposits based on the semi-weekly schedule.
- What does it mean to be a monthly schedule depositor?
- Under this schedule you deposit monthly payroll taxes by the 15th day of the following month.
- If the deposit due date falls on a national or state holiday, make the deposit on the next business day.
- Depositing and reporting are separate actions.
- Even though you may pay throughout the quarter, you only file the 941 once at the end of the quarter.
- If you have over $50,000 dollars in taxes during the look back period, follow the semi-weekly schedule.
- Deposit the taxes from payrolls paid on Saturday, Sunday, Monday or Tuesday, by the following Friday.
- Deposit the taxes from payrolls on Wednesday, Thursday, or Friday by the following Wednesday.
- Again, if the deposit due date falls on a national or state holiday, make the deposit on the next business day.
- There is a third deposit rule.
- If your payroll tax reaches $100,000 dollars, deposit the funds within one banking day and for the rest of the year use the semi-weekly schedule for all deposits under $100,000 dollars.
Important 1099 information
- 1099's are due to the recipient receiving $600 or more in income by January 31st.
- The 1099’s are due to the IRS by February 28th.
- It is always a good idea to make a copy of your 1099's and a photo copy of the paid postage for your records.
Important W2 and W3 information
- W-2’s and W-3’s are due to the receipient by January 31st. The W-2’s and W-3's are due to the IRS by February 28th. It is always a good idea to make a copy of your W-2’s and W-3's and a photocopy of the paid postage for your records.
- Prepay and milk deferral – It is very important that you receive a contract for your prepaid feed deposits. It is very important that you receive a milk deferral statement from your creamery.
- There may be a limit on your deduction for prepaid farm supplies if you use the cash method of accounting to report your income and expenses. This limit will not apply, however, if you meet one of the exceptions, described later.
Answer: Prepaid farm expenses are amounts you paid during the tax year for the following items:
- Feed, seed, fertilizer, and similar farm supplies not used or consumed during the year
- Poultry (including egg-laying hens and baby chicks) bought for use (or for both use and resale) in your farm business that would be deductible in the following year if you had capitalized the cost and deducted it ratably (for example, monthly) over the lesser of 12 months or the useful life of the poultry
- Poultry bought for resale and not resold during the year
- Prepaid farm supplies do not include any amount paid for farm supplies on hand at the end of the tax year that you would have consumed if not for a fire, storm, flood, other casualty, disease, or drought.
Important information on Deduction Limits
- You can deduct an expense for prepaid farm supplies that does not exceed 50% of your other deductible farm expenses in the year of payment.
- You can deduct an expense for any excess prepaid farm supplies only for the tax year you use or consume the supplies.