Stay Ahead of Essential Tax Deadlines to Simplify 2025 Preparation

Stay on top of essential tax deadlines and changes for 2025 to ensure your small business remains compliant and avoids last-minute stress or penalties.

Employers’ Tax Responsibilities

If your business employed staff or worked with independent contractors during 2024, issuing the necessary federal tax forms is non-negotiable.

For employees who received wages, you must distribute W-2 forms by January 31, 2025.

For independent contractors who earned at least $600, you will need to file the 1099-NEC form with the IRS and provide copies to the contractors by the same deadline.

It’s important to remember that the 1099-MISC form previously used for non-employee compensation has been replaced by the 1099-NEC.

Moreover, if you paid federal and state unemployment taxes last year, reporting these is obligatory.

You’ll need to file IRS Form 940, which pertains to the Employer’s Annual Federal Unemployment Tax Act (FUTA) Returns, by January 31, 2025.

However, if you’ve submitted your tax payments on time, you may push this due date to February 10, 2025.

Key Deadlines to Keep in Mind

Small business owners must remain vigilant about upcoming tax deadlines.

Being mindful of these dates not only reduces the likelihood of penalties and fees but also keeps you compliant.

Here’s a concise summary of important due dates:

  • Sole Proprietorship Taxes: Due April 15, 2025, with the option for an extension until October 15, 2025.
  • Partnership Taxes: Due on the 15th day of the third month following the end of the fiscal year.

    For partnerships ending on December 31, March 17, 2025, is the deadline, with possible extensions to September 15, 2025.

    Limited partnerships are required to file IRS Form 1065 and must also complete Schedule K and obtain Schedule K-1 for individual tax reporting.

  • LLC Taxes: Generally, single-member LLCs are taxed like sole proprietorships, with a deadline of April 15, 2025.

    Multi-member LLCs are taxed as partnerships and share the same deadlines as partnerships.

    If an LLC opts for taxation as a C Corporation or S Corporation, the corresponding deadlines will apply.

  • C Corporation Taxes: C Corporations operating on a calendar year must file IRS Form 1120 by April 15, 2025, with an extension available until October 15, 2025.

    For corporations with a different fiscal year, the due date is the 15th day of the fourth month after the close of that fiscal year.

  • S Corporation Taxes: Businesses that elect S Corp status and follow a calendar year must file IRS Form 1120-S by March 17, 2025, extending this deadline to September 15, 2025, if necessary.

    For S Corps not adhering to the calendar year, file by the 15th day of the third month after the fiscal year ends.

What’s New for the 2025 Tax Season

As we look ahead, a few changes are underway for the 2024 tax year that may affect your business’s tax filings:

  • The standard mileage rate for business vehicle use has been updated to 67 cents per mile.
  • The IRS has delayed the implementation requiring payment platforms and online marketplaces to issue 1099-K forms for individuals receiving over $600.

    Instead, third-party settlement organizations must now report only transactions exceeding $5,000 for the 2024 tax year.

  • Businesses can now only deduct 50 percent of meal expenses.

    While some meals tied to employee, customer, or public events retain full deduction privileges, entertainment costs are outright disallowed.

  • Pass-through business owners may deduct 20 percent of their qualified business income for 2024, provided their total income doesn’t exceed $191,950 (single filers) or $383,900 (joint filers), with certain exceptions.
  • The last opportunity for businesses to claim a full 100 percent deduction for qualified bonus depreciation on fixed assets was for the 2022 tax year.
  • Starting in 2024, the maximum deduction for qualified bonus depreciation is limited to 60 percent, decreasing by 20 percent in subsequent years.

    Additionally, the federal Section 179 depreciation limit stands at $1,220,000, although state rules might vary.

    Vehicle limits for both bonus depreciation and Section 179 depreciation are set separately.

It’s never too early to prepare for tax season as a small business owner.

Understanding vital deadlines and updated tax laws will ease your tax filing experience.

This preparation not only reduces end-of-season chaos but also protects you from unwanted financial burdens related to late fees or penalties.

Source: Smallbiztrends