Year End Tax Reporting Reminders

By now, you should have provided your employees with their copy of Form W-2 (wage and tax statement), and your independent contractors with their copy of Form 1099-MISC (nonemployee income). These forms were due to the recipients by January 31, 2011. The filing deadlines for submitting the 1099’s to the IRS is March 1, 2011 (if submitting the forms by paper). If you are filing over 250 forms, you must submit them electronically by March 31, 2011. The W-2 forms must be filed with the Social Security Administration by February 28, 2011. If filing electronically, the due date is March 31, 2011. Late penalties apply if forms are not filed by the due date.

Charitable organizations, including churches, should also provide receipts to donors for their charitable contributions. While the IRS does not impose a due date on the organization for providing receipts to donors, the donor is required to have written verification of their contribution prior to filing their tax return and claiming a tax deduction for the contribution. For cash gifts over $250, a receipt from the organization is required (a canceled check will not suffice). Therefore, it is in the best interest of the charity to provide these statements as soon as possible after the end of the year. Instead of waiting until the end of the year, some organizations provide receipts throughout the year as donors make gifts or at regular intervals, such as quarterly.