TIME SENSITIVE - 2023 IMPORTANT YEAR END INFORMATION
Dear Client:
Please read this in its entirety as both Individuals and Businesses are affected.
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1099 Reporting
Applies to ALL business entities, rental activities and/or small business activities 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 for services during 2023. Forms 1099 are not required if such payments were for inventory, for personal purposes, or for any payments made via credit card. Forms 1099 are also required when rent, interest, or dividends are paid. The deadline for providing Forms 1099 to the recipients is January 31, 2024.
Forms 1099 are required to be submitted to the Internal Revenue Service electronically in most circumstances. Note that there are significant penalties for failing to electronically file.
Our firm recently sent detailed information regarding this e-filing requirement to all our clients. If you did not receive it, contact our office and we’ll be happy to send it to you again.
IMPORTANT: If you need our help with this reporting, contact us as soon as possible. Our office must receive your information no later than January 5, 2024. Forms 1099 will not be completed by the deadline on data received after this date.
If our office handles your 1099 reporting, please ensure that we have your current address and current addresses for all of your vendors. There is an additional fee for correcting 1099’s.
1099 Reporting Tip: Remember to capture checks written in December. If you’re simply relying on bank statements to tabulate your 1099’s you may miss some payments since checks written at the end of the year may not have cleared on your December bank statement. If you’re submitting information to our office to process your 1099’s, please include a list of all checks written during December. There is an additional fee for correcting 1099’s when incomplete or inaccurate information is submitted to our office for processing.
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Inventory
If your business maintains inventory, a physical inventory count (in dollars, at your cost) is required as of 12/31/2023. Forward the ending inventory figure to us.
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Business Personal Property Tax
The state of Texas requires that business-use assets on hand as of January 1, 2024, are reported to the county in which your business resides. This reporting is due to the county on April 15, 2024. If you need our help with this reporting, contact our office as soon as possible.
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 and supplies that are received from another state and within 175 days from the purchase date, the completed goods are then shipped out of state. Please contact our office if you feel this may apply to you and you have questions or need help.
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Payroll
If your business is planning on issuing Christmas or year-end bonuses, whether via check or cash, they must be included in payroll. If you need our help with this, contact Meagan Smith at 817-430-3000 ext 106 as soon as possible.
2023 Forms W-2 are due to your employees no later than January 31, 2024.
Forms W3 and W-2 are required to be submitted to the Internal Revenue Service electronically in most circumstances. Note that there are significant penalties for failing to electronically file.
Our firm recently sent detailed information regarding this e-filing requirement to all our clients. If you did not receive it, contact our office and we’ll be happy to send it to you again.
If you are exempt from the electronic filing requirement and are eligible to paper file the package of Form W3 and Forms W-2, they must be mailed to the Social Security Administration no later than January 31, 2024.
If our office handles your payroll reporting, please ensure we have your current address and current addresses for all of your employees. There is an additional fee for processing corrected W-2s.
W-2 Reporting Tip: Remember to capture checks written in December. If you’re simply relying on bank statements to tabulate your W-2’s, you may miss some payments since checks written toward the end of the year may not have cleared on your December bank statement. If you’re submitting information to our office to process your W-2s, please include a list of all checks written during December. There is an additional fee for processing corrected W-2s when incomplete or inaccurate information is submitted to our office for processing.
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Mileage
If you use personal vehicle(s) for business use, we are required to obtain the following on each vehicle:
- Make & Model of Vehicle
- TOTAL miles driven on the vehicle in 2023
- Business miles driven on the vehicle in 2023
- Commuting miles driven on the vehicle in 2023 (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.
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Business Activity
If our office handles your business bookkeeping, we will be in touch regarding any additional information we may need.
If our office does not handle your business bookkeeping:
Upload your 2023 year-to-date Financial Statements to the portal.
If you need our help compiling your books and preparing your financial statements, and our office has not received any 2023 information from you, the chances of both your Business return and Personal return going on extension are extremely likely. We realize that we all get busy and life gets in the way. However, please understand that we are approaching our busiest time and finding the bandwidth to process a years’ worth of data during this time is difficult. Should you have extenuating circumstances, feel you cannot go on extension, and must have your returns filed by the original deadline, there will be an expedite fee assessed on your bookkeeping and tax preparation fees. Please contact our office for the amount.
In order to avoid this situation in the future, forward your information to us on the agreed upon schedule, which is either monthly or quarterly. If you need a reminder of which time frame you chose, please contact our office.
If you handle your bookkeeping via QuickBooks desktop:
- You may need to upgrade QuickBooks. Intuit no longer supports versions 2021 or earlier and our office follows their lead. If you are using QuickBooks version 2021 or earlier, you will need to upgrade QuickBooks before sending the Accountant’s Copy to our office.
- Include your normal QuickBooks password (the one you use each time you open QuickBooks) when sending the Accountant’s Copy to our office.
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The 2023 federal tax deadline for Partnerships and S-Corporation tax returns is March 15, 2024. If we have not received the information necessary to complete your tax return by February 9, 2024, we cannot ensure your return will be completed by the deadline.
Business Tax Return Extensions: Our office will automatically file an extension on behalf of all clients for whom a 2023 engagement has been activated, and whose returns are not filed by the deadline.
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Did you form a new LLC, Corporation, Partnership, or Trust?
If you formed an entity in 2023 that our office is unaware of, or for whom you have not yet activated your 2023 business engagement with our firm, there are additional filing requirements and the deadlines are rapidly approaching. Please contact our office as soon as possible to ensure filing deadlines are not missed.
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NEW Reporting Requirement Affecting Most LLCs, Limited Partnerships, and Corporations: Congress enacted the Corporate Transparency Act (CTA), which seeks to detect money laundering and terrorism by requiring reporting companies to submit certain invasive information to the Financial Crimes Enforcement Network (FinCEN) effective January 1, 2024. Failure to comply could result in civil and/or criminal penalties.
Our firm recently sent information regarding this filing requirement to all our clients. If you did not receive it, contact our office and we’ll be happy to send it to you again.
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Business Annual Tax Organizer: A completed annual organizer is required for each business entity. We utilize the SmartVault portal to facilitate delivery of the Annual Organizer. You will receive an email notification once it is available (normally around mid-January). Stay tuned!
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Personal Annual Tax Organizer: At a minimum, the completed Q&A and Due Diligence Questions sections of the annual organizer are required for each personal tax return. We utilize the SmartVault portal to facilitate delivery of the Annual Organizer. You will receive an email notification once it is available (normally around mid-January). Be on the lookout!
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The 2023 federal tax deadline for personal tax returns is April 15, 2024. If we have not received the information necessary to complete your tax return by March 15, 2024, we cannot ensure your tax return will be completed by the deadline.
Personal Tax Return Extensions: Our office will automatically file an extension on behalf of all clients for whom a 2023 engagement has been activated, and whose returns are not filed by the deadline. It’s important to note that an extension gives you more time to file your tax return, but not more time to pay tax. If you owe when your tax return is filed and payment wasn’t made with the extension by April 15, 2024, the IRS will assess late payment penalties and interest. If you need our help with this calculation, contact your tax preparer.
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Has your address, email, or phone number changed? If so, please let us know!
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Please Note:
As automated as almost everything seems to be in our world, not everything is filed electronically. Please make sure you open and read thoroughly all mail and emails from our office. Instructions regarding any action you need to take will be included in our communications.
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Due to security issues, we cannot accept any attachments ending in .zip or .exe via email. Please upload these types of files to your SmartVault portal.
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From your team at Chandler & Knowles CPAs, we hope you have a very Merry Christmas and a Happy New Year!
Rochelle Chandler, Founding Partner/CPA (ext 101)
Kristina Knowles, Partner/CPA (ext 105)
Elisa Mann, Tax Preparer / Bookkeeper (ext 113)
Michael Ducharme, Bookkeeper (ext 104)
Alice Eaves, Bookkeeper (ext 103)
Camille Bradley, Advanced Planning Coordinator (ext 299)
Mae Bradley, Office Manager (ext 298)
Meagan Smith, Director of Production (ext 106)
Lindsey Welch, Executive Assistant for Practice Development (ext 112)
Rickisha Brown, Project Manager (ext 110)
Brenda Hoyt-Stenovitch, Administrative Assistant (ext 100)
Matthew Suarez, Tax & Accounting Associate (ext 121)
Chandler & Knowles CPAs, PLLC
817-430-3000
817-430-7206 (fax)
www.ChandlerKnowlesCPA.com
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