December is the month to take final actions that can affect your tax result for 2024. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2024 should call for a tax planning consultation appointment.
If you are an employee who works for tips and received more than $20 in tips during November, you are required to report them to your employer on IRS Form 4070 no later than December 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.
Last day to withdraw funds from a Traditional IRA Account and avoid a penalty if you were born before January 1, 1951. If your birth date is during the period January 1, 1951 through December 31, 1951 (i.e., you reached age 73 in 2024), your first required distribution is for tax year 2024, but you can delay the distribution to April 1, 2025. If you are required to take a distribution in 2024, and the institution holding your IRA will not be open on December 31, you will need to arrange for withdrawal before that date.
Last day to pay deductible expenses for the 2024 return (doesn't apply to IRA, SEP or Keogh contributions, all of which can be made after December 31, 2024).
If the actions you wish to take cannot be completed on the 31st or in a single day, you should consider taking action earlier than December 31st, as some financial institutions may be closed that day.
If a due date falls on a Saturday, Sunday or legal holiday, the due date is automatically extended until the next business day that is not itself a legal holiday.
Please note that when a geographical area is designated as a disaster area, due dates will be extended. For more information whether an area has been designated a disaster area and the filing extension dates visit the following websites:
FEMA: https://www.fema.gov/disaster/declarations
IRS: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
During December, ask employees whose withholding allowances will be different in 2025 to fill out a new Form W4 or Form W4(SP).
If the monthly deposit rule applies, deposit the tax for payments in November.
If the monthly deposit rule applies, deposit the tax for payments in November.
The fourth installment of estimated tax for 2024 calendar year corporations is due.
December 31 - Last Day to Pay Deductible Expenses for 2024
Last day to pay deductible expenses for the 2024 return (doesn't apply to IRA, SEP or Keogh contributions, all of which can be made after December 31, 2024).
Last day to timely file the Beneficial Ownership Report with FinCEN for companies created before January 1, 2024. The new Beneficial Ownership Information Reporting Rule requires certain entities (corporations, limited liability companies, partnerships) to electronically file "beneficial ownership" information reports to the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) starting on January 1, 2024. Businesses created or registered to do business before Jan. 1, 2024 have until Jan. 1, 2025 to file their initial reports. Companies created or registered on or after Jan. 1, 2024 will have 30 days to file after their creation. Please contact this office if you need information about or assistance in complying with the reporting requirements. Substantial penalties apply for non-compliance.
If the actions you wish to take cannot be completed on the 31st or in a single day, you should consider taking action earlier than December 31st, as some financial institutions may be closed that day.
If a due date falls on a Saturday, Sunday or legal holiday, the due date is automatically extended until the next business day that is not itself a legal holiday.
Please note that when a geographical area is designated as a disaster area, due dates will be extended. For more information whether an area has been designated a disaster area and the filing extension dates visit the following websites:
FEMA: https://www.fema.gov/disaster/declarations
IRS: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations