Here’s basic info for businesses filing excise taxes

Businesses providing goods and services that are subject to excise tax must file a Form 720 quarterly to report the tax to the IRS.

What is excise tax?
Excise taxes are charged on a wide variety of goods, services and activities. The tax may be imposed at the time of:

Import
Sale by the manufacturer
Sale by the retailer
Use by the consumer

Many excise taxes go into trust funds earmarked for related capital projects, such as highway and airport improvements. Excise taxes are independent of income taxes. People pay excise taxes on things like gasoline, indoor tanning, airline tickets and tires.

Since the excise cost is usually included in the price, the seller or manufacturer is responsible for sending these tax payments to the IRS and filing Form 720.

When to file?
Businesses must file the form for each quarter of the calendar year. Here are the due dates:

Quarter 1 – January, February, March: Deadline = April 30
Quarter 2 – April, May, June: Deadline = July 31
Quarter 3 – July, August, September: Deadline = October 31
Quarter 4 – October, November, December: Deadline = January 31

If the due date for filing a return falls on a Saturday, Sunday or legal holiday, the due date is the next business day.

How to file?
While the IRS still accepts paper Forms 720, they encourage businesses to file electronically. To help excise taxpayers do this, the IRS posts the contact information on IRS.gov of all approved e-file transmitters for excise forms. Businesses can submit forms online 24 hours a day.

That said, not all excise forms can be filed electronically. Those that are available for electronic filing are:

Form 720, Quarterly Federal Excise Tax.
Form 2290, Heavy Highway Vehicle Use Tax.
Form 8849, Claim for Refund of Excise Taxes, Schedules 1, 2, 3, 5, 6 and 8.

When businesses file Form 720 electronically, they not only get confirmation the IRS received the form, but it reduces processing time and errors. To electronically file Form 720, business taxpayers will have to pay the provider’s fee for online submission.

Reminder: Recent Changes to Business Deductions and Expenses

The Tax Cuts and Jobs Act (TCJA) repealed some business deductions and made changes to others. In addition to some of the more commonly discussed changes, TCJA also repealed the deduction for domestic production activities (DPAD) and amended Section 162 to deny a deduction for any amount paid to or at the direction of a government entity in relation to the violation of a law unless an exception is met. See Notice 2018-23.

When Can I file my taxes for 2018

When Can I file my taxes for 2018

Tax filings can begin January 28, 2019 even with a partial government shutdown.

WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.

****2019 Important Tax Deadlines****

The New Tax Laws and YOU!

The recently passed overhaul of the U.S. tax code is already affecting the way many companies do business and how that relates to individual tax payers.

People who have studied the new law—which goes into effect starting with the 2018 tax year—say that most of us will pay less in taxes in the next few years, thanks to lower tax rates and higher standard deductions.

But the loss of some prized tax breaks and new caps on others like state and local taxes could result in higher tax bills in April 2019 for some older taxpayers, particularly those living in states with high tax rates. And over time, some of the benefits of the new tax bill will fade away; experts project that a majority of taxpayers will pay more within 10 years.

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letter and instructions.

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2017 Federal IRS Tax Calendar & Due Dates

2019 Federal Tax Calendar

This is the IRS general tax calendar, which includes the 2019 deadlines that most taxpayers will need to know.

IRS Tax Due Dates for the 2019 Calendar Year

Note that if you file your taxes based on the fiscal year (instead of the calendar year), some of these dates will be different. For more information, see the section below titled, “Fiscal Year Taxpayers.”

1st Quarter (January – March 2019): Tax Due Dates

January 10

Employees Who Work for Tips: If you received $20 or more in tips during the month of December, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

January 15

Individuals: If you did not pay your 2018 income tax through withholding (or you didn’t pay enough tax that way), you must make an estimated tax payment for 2018. You can use IRS Form 1040-ES (Estimated Tax for Individuals). This is the final installment date for 2018 estimated tax payments. Note that you don’t have to make this particular payment if you file your 2018 income tax return (Form 1040) and pay any tax due by January 31, 2019.

Farmers & Fishermen: Make your 2018 estimated tax payment with IRS Form 1040-ES (Estimated Tax for Individuals). You have until April 15, 2019 (or April 17, 2019 if you live in Maine or Massachusetts) to file your 2018 tax return (Form 1040). If you do not make your estimated tax payment by this date (January 15), you must file your 2018 tax return and pay any tax due by March 1, 2019 to avoid an estimated tax penalty.

January 31

Individuals Who Must Make Estimated Tax Payments: If you did not pay your final estimated tax installment by January 15, you may elect to file your 2018 income tax return (Form 1040) by January 31. Filing your return and paying any tax due by this date will prevent penalties for late payment of the last installment. However, if you cannot file and pay your taxes by January 31, you should file and pay your tax by April 15 (or April 17 if you live in Maine or Massachusetts).

All Businesses: Provide annual information statements to the recipients of certain payments that you made in 2018. You should use the appropriate version of Form 1099 or other information return. Form 1099 may be issued electronically with the recipient’s consent. This due date applies to these types of payments: cash payments for fish purchased from someone engaged in the trade/business of catching fish, compensation for workers who aren’t considered employees, dividends and other corporate distributions, interest, rent, royalties, payments of Indian gambling profits to tribal members, profit-sharing distributions, retirement plan distributions, original issue discount, prizes and awards, medical and health care payments, debt cancellation, and cash payments over $10,000.

Payers of Nonemployee Compensation: File IRS Form 1099-MISC (Miscellaneous Income) for nonemployee compensation that you paid in 2018.

February 11

Employees Who Work for Tips: If you received $20 or more in tips during the month of January, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

February 15

Individuals: If you claimed an exemption from federal income tax withholding last year on the IRS Form W-4 (Employee’s Withholding Allowance Certificate) you gave your employer, you will need to file a new Form W-4 by this date if you want to continue your exemption for another year.

All Businesses: Provide annual information statements to the recipients of certain payments that you made in 2018. You should use the appropriate version of Form 1099 or other information return. Form 1099 may be issued electronically with the recipient’s consent. This due date applies only to these types of payments: all payments reported on IRS Form 1099-B (Proceeds From Broker and Barter Exchange Transactions), all payments reported on IRS Form 1099-S (Proceeds From Real Estate Transactions), and substitute payments reported in Box 8 or gross proceeds paid to an attorney reported in Box 14 of IRS Form 1099-MISC (Miscellaneous Income).

February 28

All Businesses: File information returns (e.g., Forms 1099) for certain payments you made in 2018. These payments are described under the January 31 due date. Note that there are different forms for different types of payments. You should use a separate IRS Form 1096 (Annual Summary and Transmittal of U.S. Information Returns) to summarize and transmit the forms for each type of payment. For more information, see the General Instructions for Certain Information Returns. If you file Forms 1097, 1099 (except a Form 1099-MISC reporting nonemployee compensation), 3921, 3922, or W-2G electronically, your due date for submitting them to the IRS will be extended to April 1. However, the deadline for providing the recipient with these forms generally remains January 31.

March 1

Farmers & Fishermen: This is the due date to file your 2018 income tax return (Form 1040) and pay any tax due. But note that if you paid your 2018 estimated tax by January 15, 2019, you will have until April 15 (or April 17 if you live in Maine or Massachusetts) to file your return.

March 11

Employees Who Work for Tips: If you received $20 or more in tips during the month of February, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

March 15

Partnerships: This is the deadline to file your 2018 tax return (Form 1065). Provide each partner with a copy of their Schedule K-1 (Form 1065) (Partner’s Share of Income, Deductions, Credits, etc.) or substitute Schedule K-1. If you need more time to file, you can request a tax extension using IRS Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns). If you obtain an extension, you can file the return and provide each partner with a copy of their Schedule K-1 by September 16, 2019.

S Corporations: This is the deadline to file your 2018 tax return (Form 1120S) and pay any tax due. Provide each partner with a copy of their Schedule K-1 (Form 1120S) (Shareholder’s Share of Income, Deductions, Credits, etc.) or substitute Schedule K-1. If you need more time to file, you can request a tax extension and pay what you estimate you owe in tax. If you obtain an extension, you can file the return, pay any additional tax/penalties due, and provide each partner with a copy of their final Schedule K-1 by September 16, 2019.

S Corporation Election: File IRS Form 2553 (Election by a Small Business Corporation) to elect to be treated as an S corporation starting with calendar year 2019. Note that if you file Form 2553 late, your S corporation treatment will not begin until calendar year 2020.

2nd Quarter (April – June 2019): Tax Due Dates

April 1

Electronic Filings of Forms 1097, 1098, 1099, 3921, 3922, and W-2G: File these forms with the IRS by this date. Note that this deadline only applies if you file electronically. Otherwise, see February 28. The due date for providing the recipient with these forms generally remains January 31. For more information, see IRS Publication 1220.

April 10

Employees Who Work for Tips: If you received $20 or more in tips during the month of March, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

April 15

Individuals: File your 2018 income tax return and pay any tax due. (If you live in Maine or Massachusetts, your deadline is April 17, 2019.) If you need more time to file your return, you can request a tax extension with IRS Form 4868 (Application for Automatic Extension of Time To File U.S. Individual Income Tax Return). Note that an extension only gives you extra time to file, so you should pay what you estimate you owe in tax by the original April deadline to avoid penalties. If you obtain a tax extension, you will have until October 15, 2019 to file your tax return.

Individuals: If you are not paying your 2019 income tax through withholding (or you will not pay enough tax during the year that way), you should make the first installment payment for your 2019 estimated tax. You can use IRS Form 1040-ES (Estimated Tax for Individuals). For more information, see IRS Publication 505 (Tax Withholding and Estimated Tax).

Household Employers: If you paid cash wages of $2,100 or more to a household employee during 2018, you must file IRS Schedule H (Form 1040)(Household Employment Taxes). If you are required to file an annual income tax return (IRS Form 1040), you should include Schedule H with your return and report any household employment taxes. If you paid total cash wages of $1,000 or more in any calendar quarter of 2017 or 2018 to household employees, you should report any federal unemployment (FUTA) on Schedule H. Additionally, make sure to report any income tax you withheld for your household employees. For more information, see IRS Publication 926 (Household Employer’s Tax Guide).

Corporations: File a 2019 income tax return, IRS Form 1120 (U.S. Corporation Income Tax Return), and pay any tax due. If you need more time to file, you can request a tax extension with IRS Form 7004. Make sure you file your extension and pay what you estimate you owe in taxes by this date to avoid penalties.

Corporations: Make the first installment payment for 2019 estimated income tax. You can use the worksheet, IRS Form 1120-W (Estimated Tax for Corporations), to help you calculate your estimated tax for the year.

May 10

Employees Who Work for Tips: If you received $20 or more in tips during the month of April, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

June 10

Employees Who Work for Tips: If you received $20 or more in tips during the month of May, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

June 17

Individuals: If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, your federal income tax return is due on this date. File IRS Form 1040 and pay any tax due. Otherwise, see April 15. If you need more time to file your tax return, you can use IRS Form 4868 to get a 4-month extension. However, you should still pay what you estimate you owe by this date to avoid penalties. If you obtain an extension, you will have until October 15, 2019 to file your tax return. Note that members of the military who are stationed in a combat zone may be allowed an additional filing extension. For more information, see IRS Publication 3 (Armed Forces’ Tax Guide).

Individuals: If you are not paying your 2019 income tax through withholding (or you will not pay enough tax during the year that way), pay the second installment of your 2019 estimated tax by this date. You can use IRS Form 1040-ES (Estimated Tax for Individuals). For more information, see IRS Publication 505 (Tax Withholding and Estimated Tax).

Corporations: Make the second installment payment for 2019 estimated income tax. You can use the worksheet, IRS Form 1120-W (Estimated Tax for Corporations), to help you calculate your estimated tax for the year.

3rd Quarter (July – September 2019): Tax Due Dates

July 10

Employees Who Work for Tips: If you received $20 or more in tips during the month of June, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

August 12

Employees Who Work for Tips: If you received $20 or more in tips during the month of July, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

September 10

Employees Who Work for Tips: If you received $20 or more in tips during the month of August, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

September 16

Individuals: If you are not paying your 2019 income tax through withholding (or you will not pay enough tax during the year that way), pay the third installment of your 2019 estimated tax by this date. You can use IRS Form 1040-ES (Estimated Tax for Individuals). For more information, see IRS Publication 505 (Tax Withholding and Estimated Tax).

Partnerships: If you obtained a 6-month tax extension, your 2018 tax return (IRS Form 1065) is due by this date. Otherwise, see March 15. You must also provide each partner with a copy of their final/amended Schedule K-1 (Form 1065) or substitute Schedule K-1.

S Corporations: If you obtained a 6-month tax extension, your 2018 tax return is due by this date. File IRS Form 1120S and pay any tax, interest, and penalties due. Otherwise, see March 15. You must also provide each shareholder with a copy of their final/amended Schedule K-1 (Form 1120S) or substitute Schedule K-1.

Corporations: Make the third installment payment for 2019 estimated income tax. You can use the worksheet, IRS Form 1120-W (Estimated Tax for Corporations), to help you calculate your estimated tax for the year.

4th Quarter (October – December 2018): Tax Due Dates

October 10

Employees Who Work for Tips: If you received $20 or more in tips during the month of September, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

October 15

Individuals: If you obtained a 6-month tax extension, your 2018 tax return is due by this date. File IRS Form 1040 and pay any tax, interest, and penalties due.

Corporations: If you obtained a 6-month tax extension, your 2018 tax return is due by this date. File IRS Form 1120 and pay any tax, interest, and penalties due. Otherwise, see April 15.

November 12

Employees Who Work for Tips: If you received $20 or more in tips during the month of October, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

December 10

Employees Who Work for Tips: If you received $20 or more in tips during the month of November, you are supposed to report them to your employer. You can report your tips with IRS Form 4070 (Employee’s Report of Tips to Employer).

December 16

Corporations: Make the fourth installment payment for 2019 estimated income tax. You can use the worksheet, IRS Form 1120-W (Estimated Tax for Corporations), to help you calculate your estimated tax for the year.

Fiscal Year Taxpayers: 2019 Due Dates

Individuals

IRS Form 1040: This is the individual income tax return, which is due on the 15th day of the 4th month after the end of your tax year. (For example, if your tax year ends on December 31, 2018, your 1040 return is due by April 15, 2019.) If you need more time to file your return, you can request a tax extension by submitting IRS Form 4868 by your original filing deadline.

Estimated Tax Payments (IRS Form 1040-ES): There are four installment payments for estimated tax. The payments are due on the 15th day of the 4th, 6th, and 9th months of your tax year. The fourth/final payment is due on the 15th day of the 1st month after your tax year ends. (For example, if your tax year ends on December 31, 2018, your final installment payment is due by January 15, 2019.)

Partnerships

IRS Form 1065: This is the annual income tax return for Partnerships. It is due on the 15th day of the 3rd month after the end of the partnership’s tax year. (For example, if your tax year ends on December 31, 2018, your 1065 return is due by March 15, 2019.) You must also provide each partner with a copy of their Schedule K-1 (Form 1065) or substitute Schedule K-1 by the 15th day of the 3rd month after the end of the partnership’s tax year. If you need more time to file Form 1065, you can request a 6-month extension by submitting IRS Form 7004 by your original filing deadline.

Corporations & S Corporations

IRS Form 1120: This is the annual income tax return for Corporations. It is due on the 15th day of the 4th month after the end of the corporation’s tax year. (For example, if your tax year ends on December 31, 2018, your 1120 return is due by April 15, 2019.) However, note that a corporation with a fiscal tax year ending on June 30 must file Form 1120 by the 15th day of the 3rd month after the end of its tax year. A corporation with a short tax year ending anytime in June will be treated as if the short year ended on June 30, and must file Form 1120 by the 15th day of the 3rd month after the end of its tax year.

IRS Form 1120S: This is the annual income tax return for S Corporations. It is due on the 15th day of the 3rd month after the end of the corporation’s tax year. (For example, if your tax year ends on December 31, 2018, your 1120S return is due by March 15, 2019.) You must also provide each shareholder with a copy of their Schedule K-1 (Form 1120S) or substitute Schedule K-1 by the 15th day of the 3rd month after the end of the corporation’s tax year.

IRS Form 7004: This form is used to request a 6-month tax extension for Form 1120 (Corporations) or Form 1120S (S Corporations). However, corporations with a fiscal year ending on June 30 (or a short tax year treated as if the short year ended on June 30) will use Form 7004 to request a 7-month extension of time to file Form 1120. Keep in mind that Form 7004 must be submitted by the original filing deadline in order to be approved by the IRS.

Estimated Tax Payments: There are four installment payments for estimated tax. The payments are due on the 15th day of the 4th, 6th, 9^th, and 12th months of the corporation’s tax year

IRS Form 2553: This form is used to choose S Corporation treatment. It is due no more than 2 months and 15 days after the beginning of the tax year that the election is to take effect, or at any time during the preceding year.

Legal Holidays

These are the legal holidays for 2019:

January 1 – New Year’s Day
January 21 – Martin Luther King, Jr.’s Birthday
February 18 – Washington’s Birthday
April 16 – Emancipation Day (District of Columbia)
May 27 – Memorial Day
July 4 – Independence Day
September 2 – Labor Day
October 14 – Columbus Day
November 11 – Veterans Day
November 28 – Thanksgiving Day
December 25 – Christmas Day

IRS Tax Tip: Taxpayers can now get tax tips and helpful news from the IRS on Instagram.

IRS Tax Tip: Taxpayers can now get tax tips and helpful news from the IRS on Instagram.

The agency just debuted it’s official Instagram account, IRSNews, which users can access at www.instagram.com/irsnews or on their smartphone using the Instagram app.

The IRS will use its new Instagram account it to:

Provide the latest tax scam information to help taxpayers keep their personal data secure.
Better serve young adults, the majority of whom use Instagram.
Share information in Spanish and other languages.
Reinforce messages the IRS promotes on its other social accounts.

The IRS will use Instagram along with several other social media tools to communicate with taxpayers:

YouTube: The IRS offers video tax tips in English, Spanish and American Sign Language.
Twitter: Taxpayers can follow @IRSnews for tax-related announcements and tips. @IRStaxpros tweets news and guidance for tax professionals. Tweets from @IRSenEspanol have and the latest tax information in Spanish. @IRSTaxSecurity tweets tax scam alerts.
Facebook. News and information for taxpayers and tax return preparers.
LinkedIn. The IRS shares agency updates and job opportunities.

The IRS also has their own app, IRS2Go. Taxpayers can use this free mobile app to check their refund status, pay taxes, find free tax help, watch IRS YouTube videos and get IRS Tax Tips by email. Like Instagram, the IRS2Go app is available from the Google Play Store for Android devices, or from the Apple App Store for Apple devices. IRS2Go is available in both English and Spanish.

California Business Search

Business Search

This search provides access to available information for corporations, limited liability companies and limited partnerships of record with the California Secretary of State, including free PDF copies of imaged business entity documents, including the most recent imaged Statements of Information filed for corporations and limited liability companies. Please note: This search is not intended to serve as a name availability search. For information on checking or reserving a name, refer to Name Availability.

To conduct a search:

Select the applicable search type.
In the “Search Criteria” box, enter the entity name or number you wish to search. Note: If entering the entity number of a corporation, the number must begin with the letter C.
Select the search filter you wish to use to locate the entity if searching for an entity name.
Select the Search button.
For help with searching an entity name or number, refer to Search Tips.

All fields marked with an asterisk (*) are required.

Search Type *

Corporation Name LP/LLC Name Entity Number

Search Criteria *

Search Filter

Disclaimer: This tool allows you to search the Secretary of State’s California Business Search database for abstracts of information for domestic stock, domestic nonprofit and qualified foreign corporations, limited liability companies and limited partnerships that have filed with this office. This search tool groups corporations separately from limited liability companies and limited partnerships and returns all entities for the search criteria in the respective groups regardless of the current status.

Although every attempt has been made to ensure that the information contained in the database is accurate, the Secretary of State’s office is not responsible for any loss, consequence, or damage resulting directly or indirectly from reliance on the accuracy, reliability, or timeliness of the information that is provided. All such information is provided “as is.” For information on ordering copies of the official business entity records for a particular entity, please refer to Information Requests.

Business owners can visit IRS.gov for resources to help understand tax reform

Business owners can visit IRS.gov for resources to help understand tax reform

The IRS reminds business owners with questions about the Tax Cuts and Jobs Act that there are several resources to help answer their questions. The legislation passed in December 2017 changes many areas of the tax law, including some that affect businesses. Here are some of the resources on IRS.gov that can help:

IRS.gov/taxreform. The IRS created the Tax Reform page to highlight what taxpayers need to know about the tax law changes and how they affect taxpayers. This page also links taxpayers, businesses and tax professionals to news releases, recently updated publications, notices, legal guidance, Tax Reform Tax Tips and other resources related to the legislation.
Fact sheets. IRS posts facts sheets on a wide range of topics, including tax reform. The depreciation fact sheet has information about new rules and limitations for depreciation and expensing under the new law.
Publications. To help business owners understand the new law, the IRS has updated several publications, including Publication 15, Circular E, Employer’s Tax Guide.
Frequently asked questions. To help employers and taxpayers, the IRS posted FAQs on these topics:
- How to use the Withholding Calculator.
- Changes to the Withholding Tables.
- The employer credit for paid family and medical leave. This is a general business credit that employers may claim based on wages paid to qualifying employees while they’re on family and medical leave.
Tax tips. Business owners can subscribe to get tax reform tips and other easy-to-read tax tips by e-mail from the IRS throughout the year.
E-News. The IRS issues regular updates on small business topics, including tax reform. It’s easy to subscribe to this email service.

The IRS will give more information about business-related tax law changes throughout the year. The agency will update IRS.gov/taxreform to reflect changes as they develop.

IRS reminder: Second estimated tax payment due June 15

IRS reminder: Second estimated tax payment due June 15; form, publication can help people pay the right amount following law changes

With tax reform bringing major changes for the year ahead, the Internal Revenue Service today reminded self-employed individuals, retirees, investors and others who need to pay their taxes quarterly that the second estimated tax payment for 2018 is due on Friday, June 15, 2018.

The Tax Cuts and Jobs Act, enacted in December 2017, changed the way tax is calculated for most taxpayers, including those with substantial income not subject to withholding. Among other reforms, the new law changed the tax rates and brackets, revised business expense deductions, increased the standard deduction, removed personal exemptions, increased the child tax credit and limited or discontinued certain deductions. As a result, many taxpayers may need to raise or lower the amount of tax they pay each quarter through the estimated tax system.

Form 1040-ES, available on IRS.gov, is designed to help taxpayers figure these payments simply and accurately. The estimated tax package includes a quick rundown of key tax changes, income tax rate schedules for 2018 and a useful worksheet for figuring the right amount to pay. The IRS also mailed 1 million Form 1040-ES vouchers with instructions in late March to taxpayers who used this form last year.

A companion publication, Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, which can help taxpayers determine whether they should pay estimated tax, such as those who have dividend or capital gain income, owe alternative minimum tax or have other special situations.

Who needs to pay quarterly?

Most often, self-employed people, including individuals involved in the sharing economy, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others – a substantial portion of whose income is not subject to withholding – often need to make these payments as well. Other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.

Because the U.S. tax system operates on a pay-as-you-go basis, taxpayers are required, by law, to pay most of their tax liability during the year. For 2018, this means that an estimated tax penalty will normally apply to any party that pays too little tax, usually less than 90 percent, during the year through withholding, estimated tax payments or a combination of the two.

Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers, fishermen, casualty and disaster victims, those who recently became disabled, recent retirees, and those who receive income unevenly during the year. In addition, there is an exception to the penalty for those who base their payments of estimated tax on last year’s tax. Generally, taxpayers will not have an estimated tax penalty if they make payments equal to the lesser of 90 percent of the tax to be shown on their 2018 return or 100 percent of the tax shown on their 2017 return (110 percent if their income was more than $150,000). See Form 2210 and its instructions for more information.

Employees have a choice

Many employees who also receive income from other sources may be able to forgo making estimated tax payments and instead increase the amount of income tax withheld from their pay. They can do this by claiming fewer withholding allowances on their Form W-4 by completing the Deductions, Adjustments, and Additional Income Worksheet in the instructions section. If that’s not sufficient, on the Form W-4 they can ask their employer to withhold an additional flat-dollar amount each pay period.

Perform a paycheck checkup

Because of the far-reaching tax changes taking effect this year, the IRS urges all employees, including those with other sources of income, to perform a paycheck checkup now. Doing so now will help avoid an unexpected year-end tax bill and possibly a penalty. The easiest way to do this is to use the Withholding Calculator available on IRS.gov.

To use the Withholding Calculator most effectively, users should have a copy of last year’s tax return and recent paystub. After filling out the Withholding Calculator, the tool will recommend the number of allowances the employee should claim on their Form W-4. Though primarily designed for employees who receive wages, the Withholding Calculator can also be helpful to some recipients of pension and annuity income.

If the Withholding Calculator suggests a change, the employee should fill out a new Form W-4 and submit it to their employer as soon as possible. Similarly, recipients of pensions and annuities can make a change by filling out Form W-4P and giving it to their payer.

Employees who expect to receive long term capital gains or qualified dividends, or employees who owe self-employment tax, alternative minimum tax, or tax on unearned income of minors should use the instructions in Publication 505 to check whether they should change their withholding or pay estimated tax.

How and when to pay

For tax-year 2018, estimated tax payment due dates are April 18, June 15, Sept. 17 and Jan. 15, 2019. Taxpayers due a refund on their 2017 federal income tax return may be able to reduce or even skip one or more of these payments by choosing to apply their 2017 refund to their 2018 estimated tax. See Form 1040 and its instructions for more information.

Taxpayers in presidentially-declared disaster areas may have more time to make these payments without penalty. Visit the Tax Relief in Disaster Situations page for details.

The fastest and easiest way to make estimated tax payments is to do so electronically using IRS Direct Pay or the Treasury Department’s Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments. For filers paying by check, the check must be payable to the “United States Treasury.”

More information about tax withholding and estimated tax can be found on the agency’s Pay As You Go web page, as well as in Publication 505, Tax Withholding and Estimated Tax.

What taxpayers should know about tax return copies and transcripts

What taxpayers should know about tax return copies and transcripts

The IRS recommends that taxpayers keep a copy of tax returns for at least three years. Doing so can help taxpayers prepare future tax returns or even assist with amending a prior year’s return. If a taxpayer is unable to locate copies of previous year tax returns, they should check with their software provider or tax preparer first. Tax returns are available from IRS for a fee.

Even though taxpayers may have a copy of their tax return, some taxpayers need a transcript. These are often necessary for a mortgage or college financial aid application.

Here is some information about copies of tax returns and transcripts that can help taxpayers know when and how to get them:

Transcripts
To get a transcript, taxpayers can:

Order online. They can use the Get Transcript tool on IRS.gov. Users must authenticate their identity with the Secure Access process.
Order by mail. Taxpayers can use Get Transcript by Mail or call 800-908-9946 to order a tax return transcripts and/or tax account transcripts.
Complete and send either Form 4506-T or Form 4506T-EZ to the IRS. They should use Form 4506-T to request other tax records, such as a tax account transcript, record of account, wage and income, and a verification of non-filing.

Transcripts are free and available for the current tax year and the past three years. A transcript usually displays most line items from the tax return. This includes marital status, the type of return filed, adjusted gross income and taxable income. It also includes items from any related forms and schedules filed. It doesn’t reflect any changes the taxpayer or the IRS may have made to the original return.

Taxpayers needing a transcript should remember to plan ahead. Delivery times for online and phone orders typically take five to 10 days from the time the IRS receives the request. Taxpayers should allow 30 days to receive a transcript ordered by mail, and 75 days for copies of your tax return.

Copies of tax returns
Taxpayers who need an actual copy of a tax return can get one for the current tax year and as far back as six years. The fee per copy is $50. A taxpayer will complete and mail Form 4506 to request a copy of a tax return. They should mail the request to the appropriate IRS office listed on the form.

Taxpayers who live in a federally declared disaster area can get a free copy of their tax return. More disaster relief information is available on IRS.gov.

Tips for teenage taxpayers starting a summer job

Tips for teenage taxpayers starting a summer job

Now that school’s out, many students will be starting summer jobs…from working at a summer camp to being an office intern. The IRS reminds students that not all the money they earn may make it to their pocket. That’s because employers must withhold taxes from the employee’s paycheck. Here are a few things these workers need to know when starting a summer job:

New employees. Students and teenage employees normally have taxes withheld from their paychecks by the employer. When a taxpayer gets a new job, they need to fill out a Form W-4. Employers use this form to calculate how much federal income tax to withhold from the employee’s pay. The Withholding Calculator on IRS.gov can help a taxpayer fill out this form.
Self-employment. Students who do odd jobs over the summer to make extra cash – like baby-sitting or lawn care – are considered self-employed. They should remember that money earned from self-employment is taxable. Workers who are self-employed may be responsible for paying taxes directly to the IRS. One way to do that is by making estimated tax payments during the year. Taxpayers who do this should keep good records of all money they receive.
Tip income. Someone working as a waiter or a camp counselor who receives tips as part of their summer income should know that tip income is taxable income and subject to federal income tax. They should keep a daily log to accurately report them, as they will report tips of $20 or more received in cash in any single month.
Payroll taxes. This tax pays for benefits under the Social Security system. While taxpayers may earn too little from their summer job to owe income tax, employers usually must still withhold Social Security and Medicare taxes from their pay. If a taxpayer is self-employed, then Social Security and Medicare taxes may still be due and are generally paid by the taxpayer.
Reserve Officers’ Training Corps pay. If a taxpayer is in an ROTC program, active duty pay, such as pay for summer advanced camp, is taxable. Other allowances the taxpayer may receive – like food and lodging allowances paid to ROTC students participating in advanced training – may not be taxable. The Armed Forces’ Tax Guide on IRS.gov has more details.

More Information:
Tax rules for students.
Is My Tip Income Taxable?
Do I Have Income Subject to Self-Employment Tax?