Every month, the IRS releases helpful tips and reminders for small businesses. The IRS also provides tax news and alerts in Spanish. Here are some of the latest IRS tips for small business tax information:
1. Help pay off workers’ student loans
The IRS reminds employers who offer educational assistance programs that they can also use them to help pay for their employees’ student loan obligations through Dec. 31, 2025.
Though educational assistance programs have been available for many years, the option to use them to pay for workers’ student loans has only been available for payments made after March 27, 2020.
2. Estimated tax payments due Sept. 16; disaster-area taxpayers have more time
The IRS reminds small businesses and self-employed taxpayers the deadline to make third quarter estimated tax payments is Sept. 16, 2024.
Taxpayers affected by disasters in 17 states, Puerto Rico and the Virgin Islands may automatically qualify for a delayed tax-payment deadline.
Get more information on Direct Pay and options to pay by debit card, credit card or digital wallet at IRS.gov/payments and through the IRS2Go app.
3. Disaster relief and preparedness
Ernesto
The IRS announced tax relief for individuals and businesses throughout Puerto Rico and the U.S. Virgin Islands affected by Tropical Storm Ernesto that began on Aug. 13, 2024. These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.
South Dakota
The IRS announced tax relief for individuals and businesses in South Dakota that were affected by severe storms, straight-line winds and flooding that began on June 16, 2024. These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.
September is National Preparedness Month
With the peak of hurricane season arriving and an elevated wildfire risk across much of the West, the IRS reminds taxpayers to develop an emergency preparedness plan or, if they already have one, to update it for 2024.
4. Do an end-of-summer tax checkup to avoid tax surprises next year
The IRS urges taxpayers to make tax withholding or payment updates to avoid a potential surprise next year at tax time.
People who should be especially careful are:
- Gig economy workers
- Those with a “side hustle”
- Anyone earning income not subject to withholding
Taxpayers can use the IRS Tax Withholding Estimator to figure out the amount of federal income tax they should pay during the year.
Note: The contact person must be authorized to receive private taxpayer information about the registering entity: an officer, trustee, or representative (IRS Form 2848, Power of Attorney) of the registering entity.
5. Interest rates remain the same for the fourth quarter of 2024
The IRS announced interest rates will remain the same for the calendar quarter beginning Oct. 1, 2024.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points.
The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates are computed from the federal short-term rate determined during July 2024. See Revenue Ruling 2024-18 for details.
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