Tax Season 2024: Key Dates and Strategies for Accounting Firms

As the tax season has just begun, CPAs must monitor deadlines to ensure they complete filing on time. Before a busy season, ensure that you update all documents and organize funds well for tax filing. Here are some of the critical dates that you need to keep an eye on to ensure flawless tax filing this season-

When does the tax season 2024 commence?

Tax season in the US will begin on January 29, 2024. This is the period the IRS starts accepting and processing tax returns from the previous year. If you use tax software or an offshore firm to file your firm's  taxes, you can start preparing early.

When Is The Deadline?

The deadline for filing federal tax returns for tax season 2024 is April 15. However, the IRS considers exceptional cases, such as natural disasters or overseas military service, offering extra time or extensions. April 15 is the last date to request a tax extension. 
The tax deadline for businesses in 2024 is April 17 in Massachusetts and Maine. Your firm might also get more time for filings if you reside in a federally declared disaster area. 

Variations In Tax Filing Across States

Most states meet the deadline for federal taxes, but Delaware, Iowa, Virginia, and Louisiana are exceptions. Moreover, states with no income tax considerations, like Alaska, Florida, and Texas, have different concerns. Therefore, keeping track of the latest details from your state's Department of Revenue is essential.

What is the income threshold for IRS Free File in 2024?

The IRS Free File program lets eligible taxpayers file their taxes for free using certain software brands. It started on January 12. The limit to qualify for this service has grown to $79000 in 2023 tax returns, from $73000 for 2022.
According to the IRS, some taxpayers can file for free using the IRS Direct File trial. The organization anticipates the scheme to be accessible to qualifying taxpayers in 13 states across the US by mid-March. The criteria will depend on your location, income tax credits, and deductions. 

When will IRS process the tax refund?

Usually, the IRS issues tax refunds for most taxpayers within 21 days. If the return is a bit complicated or if your firm is submitting a paper return, it might take longer. 
The fastest way to receive your refund is by e-filing and choosing direct deposit for delivery. Those using the direct deposit method will get their tax refund by the middle of February. 

January 12-Opening of The IRS Free File 
The IRS Free File program will be available just before the start of the tax season. The platform offers free tax preparation software to qualified taxpayers. 
January 29-Tax Filing Season Begins
On this date, the IRS will start accepting and processing tax returns for 2023. If you're using tax preparation software, it's time to switch from preparation to submission.
January 31-W2 and 1099 Forms Deadline
Employers must send W-2 and 1099 forms by this date. Ensure that you check your mailboxes daily to gather all essential documents on time. These forms are the foundations of accurate tax filing, and timely receipt is necessary.
April 15- Deadline of Federal Tax Returns
Since April 15 is the official deadline for Federal Tax Returns, mark this date on your calendar. Though there are some exceptions in a few states, it is the general deadline for taxpayers across the US.
April 15-Tax Extension Request Deadline
April 15 is also the deadline for requesting a tax extension. As a CPA, you should inform your clients that getting an extension allows them more time to file their paperwork. 
October 15-Deadline of Extended Tax Filing 
Taxpayers who have requested and received an extension must file their tax returns by this final deadline. So, it would help if your firm managed these extended filings carefully to avoid mishaps at the last moment.

Conclusion: Navigating Tax Season with Offshore Staff

As the tax calendar unfolds, sticking to the business taxes deadline 2024 is crucial for CPA firms seeking compliance and peace of mind. In the complex realm of evolving tax regulations, staying current is challenging. Opting for tax filing offshoring becomes a beacon of assurance, ensuring not just compliance but precision.

Outsourcing introduces CPA firms to a skilled team well-versed in the latest tax rules, offering more than a partnership – a synchronized dance of proficiency. Aligning with an offshore accounting services provider empowers your firm with the tools to navigate intricate tax filings seamlessly, elevating efficiency and client satisfaction.

For precision and excellence in tax filing, partnering with an offshore accountant is the clear path. This collaboration streamlines your accounting process, enhancing service quality and exceeding expectations. Let the synergy with an offshore accountant catalyze a seamless and triumphant tax season journey for your firm.

FAQs

Q. Can I file an amended Form 1040-X electronically?
Ans:  You can use tax software to electronically amend Form 1040, 1040-SR, 1040-NR, or 1040-SS/PR for the current or two previous tax periods. You need to fill the updated return in the same way as the original one.

Q. What types of deductions am I eligible for?
Ans: Self-employed individuals and business owners have numerous tax-saving opportunities, but employees can also save on taxes. Employees can deduct contributions to IRAs, HSAs, and FSAs when filing Form 1040. Contributions to employer-sponsored retirement plans, like 401(k), don't require a deduction on the tax return. 

Q. Which offers greater benefit: a tax credit or a tax deduction?
Ans: Opting for a tax credit is typically more advantageous than a tax deduction. Tax credits directly decrease your tax liability by the full dollar amount. By contrast, tax deductions merely lower your taxable income. 

Q. What are some critical dates for CPAs to monitor during the tax season?

Ans: CPAs should note key dates such as the IRS Free File program opening on January 12, the start of the tax filing season on January 29, the deadline for W-2 and 1099 forms on January 31, and the federal tax return deadline on April 15. Extensions can be requested until April 15, and extended filings must be completed by October 15

Entigrity™ is a reliable offshore staffing partner catering to over 725 accountants, CPAs, and tax firms in the US and Canada. Through a transparent and adaptable hiring approach, the company enables firms of varying sizes to secure proficient accounting, bookkeeping, and tax preparation staff. Being a company "run by accountants, for the accountants," Entigrity ensures precise alignment with the hiring requirements of accounting firms, offering staff under your supervision to alleviate concerns related to compliance, payroll taxes, overheads, and benefits. Proudly an independent member of the BDO Alliance USA, Entigrity has collaborated with IMA to train and enhance the skills of 5,000 professionals in India. Recognized as one of the "Dream Companies to Work For," it has earned the "Great Place to Work® Certified™" accolade in the accounting offshoring industry.

Leena Parikh, CA

Director, Training

Aim to empower team with knowledge - Training & Development