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As businesses like yours gear up for the 2023 tax season, there are several key areas to focus on to ensure a smooth and compliant tax process. Here’s a summary of what you’ll need to be aware of for business taxes:

2023 Tax Season Business Tax Tips:

1. Understand Tax Rule Changes:

It’s crucial to stay informed about the latest tax changes. For instance, in 2022, businesses could deduct 100% of what they spent at restaurants, but this figure returns to 50% in 2023. Keeping accurate financial records and consulting with a tax professional can help navigate these changes effectively.

Check out more 2023 tax changes

2. Make Sure You Completed Your Estimated Taxes:

As you already know, businesses are required to pay estimated taxes quarterly. The deadlines for estimated taxes in 2024 are specific dates in January, April, June, September, and the following January. If these dates fall on a holiday or weekend, taxes are due the next business day. If you haven’t paid all of your 2023 estimated taxes, you have until JANUARY 16TH.

3. Remember the Self-Employment Tax Rates:

Sole proprietors or partners actively involved in their business must pay both the employee and employer parts of Social Security and Medicare taxes. The self-employment tax rate in 2024 is 15.3%, split between Social Security tax and Medicare tax.

4. Don’t Forget About Employment Taxes:

Businesses with employees must handle employment tax, including Social Security and Medicare tax, federal and state income tax withholding, and federal unemployment tax. The specific rates and obligations vary, so it’s important to consult a tax advisor for clarity.

5. See if You Need to Pay Excise Taxes:

Certain businesses may need to pay excise taxes on specific goods or services, such as communication and air transportation taxes, fuel tax, retail tax, ship passenger tax, and manufacturers taxes. The IRS website provides a full list of goods and services that may be subject to excise taxes.

6. Make Sure You Use the Right Business Tax Forms for the 2023 Tax Season:

Depending on the business structure, different forms are required for filing. Forms like Schedule C, Schedule K-1, 1099-MISC, 1099-NEC, Form 1120, Form 1120-S, and Form 1065 are among the common IRS forms used by businesses. Professional assistance can be invaluable in determining the correct forms and filling them out properly.

7. Create a Tax Filing Calendar for Next Year:

Creating a tax calendar can help businesses keep track of important tax deadlines, such as the due dates for W-2s, 1099s, quarterly estimated taxes, and yearly tax returns. Missing these deadlines can lead to penalties.

8. Review All of Your Filing Options in the 2023 Tax Season and Seek Assistance if Necessary:

The IRS encourages filing electronically and choosing direct deposit for quicker refunds. There are free options for tax filing available, such as the IRS’s Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs, IRS Free File, and professional tax preparers. Taxpayers should also be aware of credits and deductions they are eligible for. However, we recommend working with a tax professional — business taxes can be incredibly complicated, and you have better things to do with your time!

Don’t Have Time for Tax Filing This Year?

It’s essential for businesses to plan ahead for tax season, understand their specific tax obligations, and seek professional advice when needed. Staying informed about tax changes and deadlines can greatly ease the tax filing process.

If you don’t have the time to take care of all of this on your own, get in touch with us today to start the tax filing process. We can help reduce the time you spend on filing — all while maximizing your refund or minimizing your tax burden.

Tax Updates and News From the IRS | Internal Revenue Service

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