Tax season 2023 has begun. The Internal Revenue Service (IRS) expects businesses and individual taxpayers to file over 168 million returns, before the April 18 deadline. An increase in basic deduction, revised tax rates, and some significant adjustments to popular tax credits and deductions are among this year’s new features. Additionally, the IRS hired 5,000+ new customer support representatives and added more in-person staff to help the taxpayers. The Inflation Reduction Act led to an increase in IRS staff, which is part of the agency’s effort to provide better service during the current filing season.
We’ll examine all those changes plus a few more. First, let’s start off by hovering to the key details you should know this tax season:
- Tax filing deadline: April 18, 2023.
- Extension deadline: October 16, 2023.
- Standard deduction increase: The standard deduction increased to $12,950 for single filers and $25,900 for married couples filing jointly.
- Tax brackets increase: Income tax brackets went up in 2022
Read on to get a detailed view of some of the most crucial information you should know about tax season 2023.
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What are the Business Tax Deadlines in 2023?
The tax filing deadline for 2022 is April 18, 2023. Now is the time for businesses to file their taxes and reflect on last year’s success or failure and set pragmatic financial goals for the next year. Failing to file the taxes by the deadline could result in penalties by the IRS in addition to the tax businesses owe. Businesses must file their tax returns on time to avoid penalties. However, they can ask for a tax extension if they need additional time to organize their tax records.
|Tax Filing Due Date||Description|
|15th March, 2023||Tax filing deadline for S corporations, multi-member LLCs, or partnerships|
|18th April, 2023||Tax filing deadline for small business owners including sole proprietors, single member LLCs, C corporations, etc.|
|17th October, 2023||Tax filing deadline for businesses who apply for a tax deadline extension|
Who Should File a Tax Return?
Businesses of all sizes and sorts must file a tax return to pay federal tax on the income they receive during a financial year. The only exemption to this requirement is for partnerships. They must submit a yearly information return and partner-specific profit/loss reports on their tax returns. The sorts of taxes due depend on how your firm is set up. Businesses working for themselves must also pay Medicare and social security taxes. Besides, they must adhere to the employment tax requirements if several employees work under them.
Extending Tax Filing Deadline? Here’s What You Should Know!
Businesses can request an extension of the tax filing deadline and get more time to prepare their taxes. Although this gives businesses extra time to file taxes, it doesn’t mean they can avoid paying taxes. They still need to pay the tax owed for the business tax deadline of 2023.
Here’s how businesses can benefit by extending the tax filing deadline extension:
- Businesses want to pay the tax but don’t have all the necessary details/documents to file the return
- They are unable to file the return because of personal exigencies
- They think that they’ll get a tax refund and want to get the documents in order
Getting an extension on the tax filing deadline requires businesses to apply for this benefit before the tax return due date.
Due Date for:
- Corporations and Partnerships – March 15, 2023
- Other Businesses – April 18, 2023
- Partnerships, C corporations, and S corporations – Form 7004
- Sole Proprietorships – Form 4868
Business Tax Filing Deadline for 2023
The tax filing deadline changes depending on the date that April 15 falls each year. It is moved to the following working day if the date falls on a weekend or a holiday.
Businesses planning to prepare for tax season 2023 need to know the dates mentioned under:
- The business tax filing deadline for 2022 taxes is April 17, 2023.
- The date for filing 2023 taxes will be April 15, 2024.
Bolster Your Tax Filing Experience with Tax Software Cloud Hosting
Businesses face various challenges while filing their taxes during tax seasons. Here’s a look at some of the most common ones:
- Complex tax laws and regulations: Tax laws and regulations change constantly and can be complex, making it difficult for businesses to keep up with the latest requirements and ensure their tax filings are accurate and in compliance with the law.
- Record Keeping: Keeping accurate records of all financial transactions is crucial for tax filing, but can be time-consuming and challenging for small businesses.
- Data Management: With the increasing volume of financial data, businesses need help managing, storing, and accessing their data efficiently. It often leads to errors in tax filings and causes additional work for tax filers.
- Deadlines: The tax filing deadlines can be stressful for businesses, especially if they need to catch up on their record-keeping or data management tasks.
Businesses can host their tax software on the cloud to simplify their tax filing process. The following are some of the benefits of tax software cloud hosting services:
- Accessibility: Cloud-based tax software allows businesses to access their tax data and tax software from any device with an internet connection, making it easier for them to manage their taxes from anywhere, anytime.
- Data Management: Tax software Cloud hosting enables businesses to store their financial data securely and access it easily, reducing the risk of data loss and errors in tax filings.
- Automation: Tax software cloud hosting on the cloud automates many of the manual tasks involved in tax filing, such as data entry, calculations, and form filling, reducing the workload and the risk of human errors.
- Integration: Cloud-hosted tax software seamlessly integrates with other business systems, such as accounting software, making it easier for businesses to manage their financial data and prepare their tax returns.
By hosting their tax software on the cloud, businesses can simplify their tax filing processes, reduce their workload, and minimize the risk of errors and compliance issues.