IRS Updates September 13
Estimated Taxes Due 15 September
The IRS reminds taxpayers who pay estimated taxes that the deadline for payment of their third quarter estimated taxes is September 15, 2022. Those who typically make quarterly estimated tax payments are the self-employed, investors, retirees, or those receiving income from dividends, interest, rental income, alimony and other sources not subject to withholding. Those who expect to owe at least $1000 in taxes for 2022 (after withholding and tax credits) should make quarterly payments. Special rules apply to some taxpayers, such as those in a federally recognized disaster area, farmers, fishermen, and those who receive income unevenly during the year. Underpaying taxes may result in a penalty.
National Preparedness Month
In recognition of September as National Preparedness Month, the IRS urges individuals, organizations, and businesses to update and secure their records. The ongoing threat of wildfires, as well as that of hurricanes, underscores the importance of having and keeping an updated emergency preparedness plan.
- The IRS recommends taxpayers keep critical documents inside waterproof containers in a secure space. This includes tax returns, birth certificates, deeds, titles, insurance policies and other such items.
- Copies should be made and given into the keeping of a trusted friend or relative at a distant location. Digital copies can be stored in a cloud-based application.
- Document inventory of personal and business property. Photos or videos are helpful, as well as written descriptions including year, make, and model of equipment. The IRS offers workbooks to help individuals and businesses compile inventory lists.
- Employers using payroll service providers should ensure their provider has a fiduciary bond in place to protect the employer against a possible default. Using the Electronic Federal Tax Payment System (EFTPS) to make federal tax deposits and business tax payments makes it easy and convenient to pay the government even when disaster displaces employees and businesses. Any business can create an EFTPS account.
Reconstructing records after a disaster may be required for tax or insurance purposes or getting federal assistance. For more information, visit National Preparedness Month.