As we begin the year, businesses and individuals must keep track of critical tax-related deadlines. From filing beneficial ownership reports to ensuring proper withholding and reporting of employee wages, January 2025 will be a busy month for those in the business world. Here’s a comprehensive guide to the most important tax deadlines in January.
Beneficial Ownership Reporting – January 13, 2025
The Fifth Circuit Court of Appeals recently lifted the injunction on the Financial Crimes Enforcement Network’s (FinCEN) Beneficial Ownership Information (BOI) reporting requirements. As a result, companies that are subject to BOI reporting must file their initial reports by January 13, 2025.
Here’s a breakdown of the filing requirements for different types of reporting companies:
Companies created or registered before January 1, 2024: These businesses must file their BOI reports by January 13, 2025. Originally, the deadline was set for January 1, 2025, but the deadline was extended to accommodate the recent ruling.
- Companies created between September 4 and December 23, 2024: These businesses also have until January 13, 2025 to submit their reports.
- Companies created after December 23, 2024: These businesses must file their reports within 21 days from their original filing deadline.
- Disaster relief extensions: Some companies may qualify for extended deadlines beyond January 13, 2025, if they are in a federally declared disaster area. Check for specific deadlines based on your business’s location.
- New companies from January 1, 2025: New businesses formed after January 1, 2025 have 30 days to file their reports once they are registered or notified of their registration status.
In addition to these deadlines, certain plaintiffs, such as those involved in the National Small Business United v. Yellen case, are exempt from filing BOI reports at this time.
Employer Monthly Deposit – January 15, 2025
Employers must make their monthly deposit of Social Security, Medicare, and withheld income tax for December 2024 by January 15, 2025. This is also the deadline for nonpayroll withholding deposits if the monthly deposit rule applies. Remember that these deposits must be made electronically, and paper coupons are no longer accepted.
Employers with a deposit liability of less than $2,500 may file these payments quarterly or annually with the return, depending on their reporting schedule.
Farmers and Fishermen Estimated Tax Payments – January 15, 2025
Farmers and fishermen must pay their estimated tax for 2024 using Form 1040-ES by January 15, 2025. While the final 2024 tax return is due on April 15, 2025, paying by January 15 ensures you avoid penalties. If you miss the January payment, you must file your 2024 return and pay any remaining tax by March 3, 2025.
1099-NEC Filing for Nonemployee Compensation – January 31, 2025
If you paid $600 or more to individuals who are not your employees for services performed for your business in 2024, you must issue Form 1099-NEC to these workers by January 31, 2025. The same deadline applies to sending copies of the form to the IRS.
Nonemployee compensation includes payments for services provided, commissions, professional fees, prizes, and awards. To avoid penalties, ensure that these 1099 forms are filed on optically scannable (OCR) forms. If you’re unsure how to complete the forms or need assistance, consider consulting a tax professional.
W-2 Forms to Employees and the Government – January 31, 2025
Employers must provide their employees with W-2 forms by January 31, 2025. This form summarizes employees’ total wages and the taxes withheld during the year. If your employees agreed to receive their W-2s electronically, you can post them on a website and notify the employees of their availability.
Additionally, W-2 Copy A and Form W-3 (Transmittal of Wage and Tax Statements) must be filed with the Social Security Administration by January 31, 2025. These can be filed either electronically or by paper.
1099 and Other Information Returns – January 31, 2025
In addition to 1099-NEC forms, businesses are required to issue other 1099 forms to report certain types of payments made during the year. These forms are due January 31, 2025 and include:
- 1099-INT for interest payments
- 1099-DIV for dividend distributions
- 1099-R for retirement plan distributions
- 1099-MISC for various other types of income
- Form 8300 for cash payments over $10,000
Additionally, businesses that report gambling winnings or make cash payments to suppliers or contractors must also comply with 1099 reporting requirements. It’s crucial to provide these statements to the recipients and file with the IRS on time to avoid penalties.
Federal Unemployment Tax (FUTA) Filing – January 31, 2025
Employers must file Form 940 to report the Federal Unemployment Tax (FUTA) for 2024 by January 31, 2025. If your undeposited tax is $500 or less, you can pay it with your return. If it exceeds $500, you must make a deposit. However, if you deposited the tax timely and in full, you can delay filing until February 10, 2025.
Quarterly Employer Filing Deadlines – January 31, 2025
For employers, the following forms are due January 31, 2025:
- Form 941 for the fourth quarter of 2024, which reports Social Security, Medicare, and withheld income tax.
- Form 943 for farm employers to report Social Security and Medicare taxes.
- Form 945 for reporting income tax withheld on nonpayroll items such as pensions, annuities, and gambling winnings.
As with the other forms, if the tax liability is less than $2,500, employers may pay it in full with the return. If you have already deposited the tax for the year in full and on time, you have until February 10 to file the returns.
Special Considerations: Weekends, Holidays, and Disaster Areas
If any due date falls on a weekend or legal holiday, the deadline is automatically extended to the next business day. Additionally, businesses located in areas affected by natural disasters may qualify for extended filing deadlines. To check if your area has been designated as a disaster zone and determine if you qualify for extensions, visit the FEMA and IRS websites.
Conclusion
Staying on top of these important tax deadlines in January 2025 is essential for avoiding penalties and ensuring compliance with IRS regulations. From filing beneficial ownership reports to submitting employee wage information, make sure your business is prepared to meet these key deadlines. If you need assistance with any of these filings, it’s advisable to consult a tax professional to avoid errors and late submissions.
