Maco & Associates
News You Can Use
March 2010

In This Issue
Deadlines in March
April and Beyond
Record Retention Tips
Tax Records - how long should you keep them?
At this time of the year, we get a lot of questions about how long our clients should keep their tax records.

Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the "three-year law" and leads many people to believe they're safe provided they retain their documents for this period of time.

However, if the IRS believes you have significantly underreported your income (by 25 percent or more), or believes there may be indication of fraud, it may go back six years in an audit.

Visit our Record Retention Guide for more details.

Audit Shield
Extended Warranty Program
Audit Shield
Our "Better Safe than Sorry" protection plan pays up to $2500 in penalties imposed by the IRS due to an error on your taxes. If you forget to give us a critical piece of your income information and your return is filed, Audit Shield will pay the penalty up to $2500. The protection plan is $24.95 and is added to your invoice, should you choose to use it. Let us know when you come in to meet about your taxes!
Don't Forget About Our Web Portal
Client Portal
If you haven't already, please contact us to establish your Web Portal password. The Portal is a secure place where you can access your tax records. The login is located in the top right corner of our website. Initially, you'll find your 2009 tax records here, and we'll be adding previous years shortly.
Tax Deadlines Are Fast Approaching
Greetings!

Today, Maco & Associates brings you a calendar of upcoming tax deadlines. We know it's difficult to keep all of these dates straight, so here's what you need to know! Keep in mind that as long as you're subscribed to our newsletter, we'll remind you of deadlines throughout the year!
Due this month...

March 10, 2010
  • Employees who work for tips: If you received $20 or more in tips during February, report them to your employer. You can use Form 4070.
MMarch 15tharch 15, 2010
  • Employers: Nonpayroll withholding, social security, Medicare, and withheld income tax is due. If the monthly deposit rule applies, deposit the tax for payments in February.

  • Corporations: File a 2009 calendar year income tax return (Form 1120 or 1120-A) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe.

  • S-Corporations: File a 2009 calendar year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120S), Shareholder's Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe.

  • Electing Large Partnerships: Provide each partner with a copy of Schedule K-1 (Form 1065-B), Partner's Share of Income (Loss) From an Electing Large Partnership. This due date is effective for the first March 15 following the close of the partnership's tax year. The due date of March 15 applies even if the partnership requests an extension of time to file the Form 1065-B by filing Form 8736 or Form 8800.

  • S-Corporation Election: File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S corporation beginning with calendar year 2010. If Form 2553 is filed late, S treatment will begin with calendar year 2010.
March 31, 2010
  • Electronic filing of Forms 1098, 1099, and W-2G: This due date applies only if you file electronically (not by magnetic media).
April and beyond...

April 12, 2010
  • Employees who work for tips: If you received $20 or more in tips during March, report them to your employer. You can use Form 4070.
April 15April 15, 2010
  • Individuals: File an income tax return for 2009 (Form 1040, 1040A, or 1040EZ) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or you can get an extension by phone if you pay part or all of your estimate of income tax due with a credit card. Then file Form 1040, 1040A, or 1040EZ by October 15.

    Also, if you are not paying your 2010 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2010 estimated tax. Use Form 1040-ES.
  • Household Employers: If you paid cash wages of $1,700 or more in 2009 to a household employee, file Schedule H (Form 1040) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2008 or 2009 to household employees. Also report any income tax you withheld for your household employees.

  • Partnerships: File a 2009 calendar year return (Form 1065). Provide each partner with a copy of Schedule K-1 (Form 1065), Partner's Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return and provide Schedule K-1 or a substitute Schedule K-1, file Form 7004. Then file Form 1065 by October 15.

  • Electing Large Partnerships: File a 2009 calendar year return (Form 1065-B). If you want an automatic 6-month extension of time to file the return, file Form 7004. Then file Form 1065-B by October 15. See March 15 for the due date for furnishing the Schedules K-1 to the partners.

  • Corporations: Deposit the first installment of estimated income tax for 2010. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

  • Employers: Nonpayroll withholding, social security, Medicare, and withheld income tax is due. If the monthly deposit rule applies, deposit the tax for payments in March.
April 30, 2010
  • Employers: Social Security, Medicare, and withheld income tax. File form 941 for the first quarter of 2010. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until May 10 to file the return.

    Also, Federal Unemployment Tax is due. Deposit the tax owed through March if more than $500.
May 10, 2010
  • Employers: Social Security, Medicare, and withheld income tax. File form 941 for the first quarter of 2010. This due date applies only if you deposited the tax for the quarter in full and on time.

  • TipsEmployees who work for tips: If you received $20 or more in tips during April, report them to your employer. You can use Form 4070.
May 17, 2010
  • Employers: Nonpayroll withholding, social security, Medicare, and withheld income tax is due. If the monthly deposit rule applies, deposit the tax for payments in April.
Take advantage of these reminders, and check out our blog, where we frequently post information about tax-related issues throughout the year.

As always, we're here year-round to help you make sense of the numbers. Give us a call at 610-489-7215 or send us an email any time throughout the year. We look forward to hearing from you.
 
- Maco & Associates