Important dates and documents to know!

As the year draws to a close, please keep these urgent dates in mind for collecting and submitting your tax documents for 2021:

• 1099 reporting
  • This reporting requirement applies to all business entities, rental properties and/or business activity reported on Schedule C of your personal return.
    IRS requires Forms 1099 be sent to sub-contractors, Attorneys, or un-incorporated vendors to whom you paid $600 or more during the normal course of business. Forms 1099 are NOT required if such payments were made via credit card, or on payments made for personal purposes. The package of Form 1096 & Forms 1099 must be mailed to the Internal Revenue Service and postmarked no later than January 31, 2022.
• Inventory
  • If your business maintains inventory, a physical inventory count (in dollars, at cost) is required as of 12/31/2021.
• Business Property Personal Tax
  • The state of Texas requires that business-use assets on hand as of January 1, 2022 are reported to the county in which your business resides. This reporting is due to the county no later than April 15, 2022. As you may know, inventory is also required to be reported on the Business Personal Property Tax Rendition. There is an exemption available if you have materials & supplies that are received from another state and within 175 days from the purchase date, the completed goods are then shipped out of state.
• Payroll
  • If your business is planning on issuing Christmas or year-end bonuses, whether via check or cash, they must be included in payroll
• W-2 Forms
  • 2021 Forms W-2 are due to your employees no later than January 31, 2022. The package of Form W3 & Forms W2 must be mailed to the Social Security Administration no later than January 31, 2022.
• Mileage
  • If you use personal vehicle(s) for business use, we will need all of the following on each vehicle when you submit your tax documents to us:
    • Make & Model of Vehicle
    • TOTAL Miles driven in 2021
    • Business Miles driven in 2021
    • Commuting Miles driven in 2021 (if any)
  • It is very important that you retain a copy of your mileage log, as the IRS will require it in the event of an audit