Quarterly estimates and safe harbors, the filing calendar, audits, notices, penalty abatement, payment plans, and what to do about unfiled returns.
55 guides, each reviewed by a CPA licensed in the US and Canada.
A 1031 like-kind exchange under IRC 1031 allows an investor to defer all capital gains and depreciation recapture taxes when selling an investment.
Small Business & BookkeepingEvery federal tax deadline for small businesses in 2025, organized by month. 2025 tax calendar (federal deadlines, calendar-year businesses): January: |.
Small Business & BookkeepingFile Form 1040-X to correct errors on a filed return within 3 years of filing or 2 years of paying the tax, whichever is later.
Small Business & BookkeepingForm 1040-X allows taxpayers to amend previously filed returns within 3 years of the original filing date (or 2 years from the date tax was paid.
Small Business & BookkeepingBusiness owners with seasonal or irregular income can use the annualized installment method (Form 2210 Schedule AI) to calculate estimated tax payments.
Small Business & BookkeepingThe IRS assesses estimated tax underpayment penalties when quarterly payments fall short. The estimated tax penalty (IRC 6654 for individuals, IRC.
Small Business & BookkeepingThe estimated tax penalty (7-8% annualized in 2025) is fully avoidable using one of three safe harbors: prior-year (100%/110% of last year's tax).
Small Business & BookkeepingUnder IRC 274(b), the deduction for business gifts is limited to $25 per recipient per year. This cap has not been adjusted for inflation since 1962.
Small Business & BookkeepingMost small businesses must use a calendar year (January 1 through December 31) for tax purposes. Sole proprietorships always use a calendar year.
Small Business & BookkeepingERC status as of 2025: 1. Moratorium on new claims. The IRS stopped processing new ERC claims filed after September 14, 2023.
Small Business & BookkeepingThe IRS charges an estimated tax penalty (Form 2210) when quarterly payments fall short.
Small Business & BookkeepingThe IRS imposes penalties for underpaying estimated taxes, but two safe harbors provide complete protection. The two safe harbors: Safe Harbor 1:.
Small Business & BookkeepingThe IRS imposes an estimated tax penalty when a taxpayer owes more than $1,000 at filing time and did not meet one of two safe harbors.
Small Business & BookkeepingSelf-employed business owners must pay quarterly estimated taxes or face penalties. The 110% prior-year safe harbor eliminates penalties even if income.
Small Business & BookkeepingFirst-year business owners with no prior-year tax liability have no safe harbor and must estimate current-year taxes accurately.
Small Business & BookkeepingThe IRS First-Time Penalty Abatement (FTA) under IRM 20.1.1.3.6.1 allows qualifying taxpayers to have failure-to-file and failure-to-pay penalties removed.
Small Business & BookkeepingHome office deduction requirements (IRC 280A): The two tests (both must be met): 1. Regular use. The space must be used on a regular basis for business.
Small Business & BookkeepingFirst-year business owners have no prior-year tax liability, making the prior-year safe harbor the easiest penalty-free strategy.
Small Business & BookkeepingQuarterly estimated taxes are due April 15, June 15, September 15, and January 15. Missing a payment triggers an automatic penalty per IRC 6654.
Small Business & BookkeepingThe estimated tax underpayment penalty is approximately 8% annualized (2024-2025). It applies per quarter, not per year.
Small Business & BookkeepingThe estimated tax underpayment penalty is calculated on Form 2210. It applies quarter-by-quarter based on the IRS's short-term interest rate.
Small Business & BookkeepingAn IRS audit notice is not a criminal investigation. Most audits are correspondence audits resolved by mail. The business owner's response.
Small Business & BookkeepingMost small business IRS audits are correspondence audits handled by mail. Correspondence audit basics: What triggers one: - Schedule C losses (especially.
Small Business & BookkeepingIRC 6015 provides relief for spouses who filed joint returns and did not know about their spouse's understatement or omission.
Small Business & BookkeepingAn IRS audit is a review of your return and records. The statute of limitations is generally 3 years from filing (IRC 6501), with exceptions for omissions.
Small Business & BookkeepingIRS audit types for small businesses: 1. Correspondence audit (most common). - Conducted entirely by mail. Correspondence.
Small Business & BookkeepingCertain Schedule C characteristics increase audit risk: high deductions relative to income, cash-intensive businesses, round-number expenses.
Small Business & BookkeepingThe IRS audits approximately 0.4% of individual returns but targets specific patterns: high Schedule C deductions relative to income.
Small Business & BookkeepingAn IRS audit is not a conviction. It is a review of your return to verify that income, deductions, and credits are reported correctly.
Small Business & BookkeepingThe IRS audits about 0.4% of individual returns, but Schedule C filers face higher rates (1-2%). The IRS audits approximately 0.4% of individual tax.
Small Business & BookkeepingThe IRS audits approximately 0.4% of individual returns, but certain patterns increase audit risk: high Schedule C deductions relative to income.
Small Business & BookkeepingSchedule C is the most-audited form on a personal return. Common triggers: reporting a loss (especially multiple years in a row).
Small Business & BookkeepingThe overall individual audit rate is approximately 0.4%, but certain factors dramatically increase the odds: high Schedule C income with large deductions.
Small Business & BookkeepingCP2000 notice essentials: 1. What it is. An automated underreporter notice under the IRS's Automated Underreporter (AUR) program.
Small Business & BookkeepingThe IRS offers installment agreements for businesses that cannot pay their full tax liability. When a small business owes taxes it can't pay in full.
Small Business & BookkeepingSmall businesses that owe $25,000 or less can get a streamlined installment agreement without financial disclosure. Larger balances require Form 433-B.
Small Business & BookkeepingAn Offer in Compromise (OIC) under IRC 7122 allows taxpayers to settle their IRS tax debt for less than the full amount owed when they can demonstrate.
Small Business & BookkeepingAn offer in compromise (OIC) is an agreement between a taxpayer and the IRS to settle a tax debt for less than the full amount owed.
Small Business & BookkeepingIf you owe taxes and can't pay in full, the IRS offers several payment options. A short-term payment plan (180 days) has no setup fee.
Small Business & BookkeepingWhen a taxpayer owes federal taxes they cannot pay in full, the IRS offers several payment options under IRC 6159. Covers key rules, filing requirements,.
Small Business & BookkeepingBusiness owners who owe taxes they cannot pay in full have options: short-term payment plans, long-term installment agreements, Offer in Compromise.
Small Business & BookkeepingIRS penalties can be abated through first-time abatement (administrative waiver) or reasonable cause. FTA is the easier path and requires no documentation.
Small Business & BookkeepingThe IRS imposes penalties on late filing (IRC 6651(a)(1), 5% per month up to 25%), late payment (IRC 6651(a)(2), 0.5% per month up to 25%).
Small Business & BookkeepingForm 2848 (Power of Attorney and Declaration of Representative) authorizes a CPA, enrolled agent, or attorney to represent you before the IRS.
Small Business & BookkeepingThe IRS removes penalties when the taxpayer demonstrates reasonable cause (not willful neglect). IRS penalties aren't final.
Small Business & BookkeepingThe IRS does not have unlimited time to audit your return, assess additional taxes, or collect on a tax debt. Statute of limitations overview.
Small Business & BookkeepingEvery quarter: reconcile bank and credit card accounts, categorize transactions, review profit and loss, calculate estimated tax payment.
Small Business & BookkeepingThe IRS requires records to support income, deductions, and credits claimed on tax returns. Record retention periods. Covers key rules, filing.
Small Business & BookkeepingCertain patterns on Schedule C increase the likelihood of an IRS audit: high deductions relative to income, cash-intensive businesses, consistent losses.
Small Business & BookkeepingSelf-employed individuals must pay estimated taxes quarterly: April 15, June 15, September 15, and January 15. 2025 estimated tax payment calendar: |.
Small Business & BookkeepingAfter South Dakota v. Wayfair (2018), businesses can have sales tax nexus in states where they have no physical presence.
Small Business & BookkeepingEvery quarterly and annual tax deadline for small business owners in 2025, including estimated tax payments, payroll tax deposits, information returns.
Small Business & BookkeepingA complete calendar of federal tax filing deadlines for small businesses in 2025, including quarterly estimated taxes, payroll deposits, Form 941.
Small Business & BookkeepingA complete calendar of federal tax deadlines for small businesses: estimated tax payments, payroll deposits, Form 941, W-2/1099 filing, S-Corp returns.
Small Business & BookkeepingEvery tax deadline for sole proprietors, S-Corps, C-Corps, and partnerships. Missing a tax deadline triggers automatic penalties.