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2021 Tax Filing

Tax Filing Requirements for Individuals 

The following page summarizes the due dates and extension request possibilities for your tax compliance obligations. This is only a brief summary so contact us if you have questions. We send tax organizers for complex filings and message requests for simpler filings. 

Due Dates and Extension Possibilities for: 

Income Tax Returns: 

The filing due date is generally April 15. (Fiscal year filers are possible but extremely rare.) 

The available extensions of time to file are determined by your location: 

  1. Anyone is eligible for an automatic 6-month extension of time to file to October 15 using Form 4868 for any reason whatsoever. 
  2. For taxpayers residing abroad there is an automatic extension of time to file and pay any tax due to June 15 (no form necessary – interest will remain due if applicable). However, we recommend filing the Form 4868 for the normal 6-month extension. 
    1. Residing abroad means living outside of the United States and Puerto Rico and your main place of business or post of duty is outside the United States. 
  3. We will assist you in the preparation of the extension requests. It is prudent to file with an extension, rather than filing in haste during the critical four weeks prior to the deadline. Failure to file an extension may generate a penalty of 5% per month versus 0.5% per month if an extension is filed, so always file the extension. 

Your Tax Organizer will be available by January 31 with instructions. A copy is on our website. Please complete it and send all your tax documents so we may prepare your tax returns efficiently. Contact us immediately if you need one. 

Foreign Account Ownership & Transaction Filings: 

FBAR – Any U.S. person having a financial interest in (or signature or other authority over) a bank, securities, insurance or other financial account (including a trust) located in a foreign country must e-file a Form FinCEN 114 if the value exceeds $10,000 at any time during year. It is due April 15 with an automatic extension to October 15. The $10,000 value is the total combined value of all accounts. This does not include foreign publicly traded securities such as an ADR held in your United States brokerage account. 

FBAR filing requirements may also apply to taxpayers that have direct or indirect control over a foreign or domestic entity with foreign financial accounts, even if the taxpayer does not have foreign account(s).

FATCA – Any U.S. person has to File Form 8938 as part of the Form 1040 if you have an interest in specified foreign financial assets (including retirement plans) and are living in the U.S. and the value of those assets for filing are: 

Married jointly– exceeds $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year. Unmarried or married filing separately – exceeds $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. 

Transactions involving foreign ownership, gifts or transfers also have reporting requirements. They include ownership of more than 10% of a foreign trust, corporation, LLC or partnership, receipt of money over certain amounts from a foreign trust, estate or individual and transfers to foreign entities. Please call us if you have any transactions with foreign entities. 

Reporting requirements for foreign activities are very complex and counter intuitive and the penalties for not filing are severe so please indicate the information we need in the allotted space in the tax organizer or in a note. Call Pete or Kristen if you have questions. 

Your Tax Organizer asks for the foreign activity information. 

Business, Professional & Occupational License Tax (BPOL) Filings 

This license tax is for business only. 

VA returns are generally due March 1st. Neither DC nor Maryland have this tax. 

For a new business, the application is due within 75 days. Call us for assistance. 

We will send you a request for your accounting and exclusions at the appropriate time. Contact us immediately if you need one. 

Payroll Tax Returns: 

If you employ staff for your business or household employees such as a nanny, maid, or gardener you may be required to pay employment taxes and file state unemployment reports. Payroll tax returns are generally due on January 31, April 30, July 31, and October 31. Payroll tax deposits may be due much earlier. 

Tax rates generally (with some exceptions) are (per employee): 

  1. Social Security – 6.2% on up to $142,800 of taxable compensation  $147,800 in 2022 
  2. Medicare – 1.45% on all taxable compensation 
  3. Federal Unemployment – 0.6% on up to $7,000 of taxable compensation 
  4. VA Unemployment – 2.5% on up to $8,000 of taxable compensation

Payroll tax deposit requirements are fairly simple for household employees if you do not withhold income taxes. The federal tax is remitted with your individual tax return and calculated on Schedule H. State unemployment tax is generally due annually for DC, Virginia, and Maryland if you apply for the annual filing. 

Payroll tax deposit requirements are complex for businesses who have staff. 

W-2s are due on January 31. 

Payroll Extensions of time to file are rare. Contact us directly if you have unusual circumstances. 

If you want us to prepare your household payroll we will send your Payroll Organizer and instructions at the appropriate time. We need copies of Forms W-4 and state equivalents, detailed payroll summaries by employee and the dates and amounts of all payroll deposits or payments. Contact us immediately if you need our help. 

1099 Filings 

Required for active rental, farming & business activities. 

1099s are generally due January 31st. Penalties for late filing have increased and increase through the year based on number of months the returns are late. 

Payments to unincorporated Independent Contractors of $600 or more generally need to be reported. 

Payments to corporations are generally exempt from reporting. Note that LLC’s are not corporations. However, all payments to attorneys or medical professionals of $600 or more must be reported regardless of form of business. 

Extensions of time to file are rare. Contact us directly if you have unusual circumstances. 

Penalties are now significant and are being enforced. There are mandatory questions on your income tax return that ask if you are required to file 1099s as well as if you filed 1099s. Not providing a correct statement carries a penalty of $270 per 1099 per year with no maximum. Late filing of 1099s could lead to penalties ranging from $50 to $270 per 1099 (based on when you file the correct form), with a maximum of $1.1M per year. 

We will send your 1099 Organizer and instructions at the appropriate time. We will need the forms W-9 and W-8. Contact us immediately if you do not receive one timely. 

Personal Property Tax Returns and Annual Report for Business: 

Virginia and DC have a separate annual report and personal property tax return. 

  • Virginia property returns are generally due May 1st but vary based on county. 
  • Virginia annual reports are due on the formation anniversary date. 
  • DC property returns are due July 31. An extension to October 31 is available.
  • DC has a biennial report due April 1st of every other year. No extension is available. 
  • Maryland has a combination Annual Report and Personal Property return due April 15. An extension is available to June 15. The annual fee is due with the return. The amount varies depending on entity type. 
    • Form 1 is required for all corporations, LLCs & most partnerships. 
    • Form AT3-51 is used for sole- proprietors that are not LLCs. 

For all 3 jurisdictions, once you file the county will bill you for the property tax. Tax rates varies by county. 

We will send you a request for your accounting and exclusions, if any, at the appropriate time. Contact us immediately if you need one.