January 31st deadline

1099s should be created if you made payments of $600 or more during the year for Services, Rents Paid (unless paid to Real Estate Management company), or any Legal Fees. These forms are required for payments made for your business (or possibly rental property) expenses. You can make 1099-misc forms online here for a small fee* OR we can make them for you (for a slightly larger fee), however, you'd need to come pick up and sign them today or tomorrow if you want us to make them and file them on time as there isn't time for us to mail you the copies that need your signature.

There are a few reasons you would NOT need to make a 1099-misc:

• Payments to Corporations: No 1099-misc needed IF you pay someone who is taxed as a corporation. An LLC may or may not be a corporation and you should request that they fill out a W9 to find out (and keep proof that you inquired).
• Electronic Payments: If you paid by credit card or other Electronic 3rd Party, you also do not need to make 1099-misc forms. This one is a little tricky; ACH transfers are NOT 3rd Party e-payments (Venmo and Zelle are considered ACH transfers--for now). But if you use Paypal or Square, you don't have to send 1099-misc (they have their own credit cards so they are considered 3rd party processors). When in doubt, just make the 1099-misc. 

Rental Property Owners: There is a new tax deduction this year that is only for "Qualified Business Income". In the past, it's not been an issue, but if you are making profits (after expenses) from rental income, you should make 1099-misc forms for any qualifying subcontractors (repair services, management services, snow/lawn, etc..). Starting in 2018, we want to consider rental income as a business if we can, and making 1099-misc forms for subcontractors is a business-like thing to do!

Payroll reports are also due tomorrow. If you use our online payroll service, please log in and make sure your To Do list is clear and that you've given your employees their W2s (the system does not mail them for you--you should print the pdf and distribute). If you do NOT use our online system, make sure you've filed all your payroll reports and sent W2s to the Social Security Administration. The new business deduction available to business owners this year may require wages reported on timely filed W2s, meaning they could disallow the new tax break if you file W2s late!

A Nanny is considered a household employee, NOT a subcontractor. So if you paid in home nannies more than $2100 in 2018, you should be filing payroll reports and making W2s for your Household Employee(s). Please let us know if you need help doing that.

Please let us know if you need help with any of the following upcoming filings (preferably long before said deadline dates):

• FEBRUARY 5: Annual MN Sales and Use Tax 
  • If you have a MN Tax ID#, you need to file online, even if you don't collect Sales Tax!  You still should report Use Tax on items purchased online without paying sales tax at time of purchase.
• MARCH 15: S-Corp/Partnership Income Tax and MNCare Tax
  •  Medical practitioners need to file annual report listing all medical service income in MN.
  • S Corp and Partnership returns are due a month earlier than personal taxes.
  • Entity Classification for 2019: Let us know if you want to discuss converting business entity type for 2019 (come in to do 2018 taxes early and discuss it with us then!)
• APRIL 15: Individual and C Corp Income Tax Returns 
  • The big deadline! Get on our schedule before April or contact us to file an extension if you need added time. 
  • FBAR filing online: If you have $10,000 or more in foreign bank accounts/asssets, you should file this online (no tax due, just informational reporting--with hefty penalties for not doing it!)

As the above Jan 31st deadline indicates, you should be receiving all your W2s and 1099-misc forms shortly, if you haven't already.

Click here to book an appointment online with your tax preparer, Your Accountant.

We hope you're staying warm and look forward to seeing you soon!

--Fox Tax Crew