20 | RKL 2018 Year-End Tax Planning Guide RKL 2018 Year-End Tax Planning Guide | 21 BUSINESS TAX PLANNING The wide-ranging commercial provisions of the Tax Cuts and Jobs Act are intended to stimulate economic growth and encourage hiring and business expansion. Some of these provisions are straightforward, like the significant and permanent reduction in the corporate tax rate, while others, like the new deduction for pass-through entities, are more complex. It’s important to place all of these changes in the context of your particular enterprise and understand the full range of implications. In this section, we’ll break down some of the major changes in the business tax arena, but be sure to consult your RKL advisor for a full assessment of the opportunities presented by tax reform. TAX REFORM IMPACT: Businesses • Corporate rate cut • Rules for net operating losses • New pass-through deduction • Bonus depreciation doubled • Partnership technical termination rules repealed These provisions are permanent under the Tax Cuts and Jobs Act STATE & LOCAL Tax Issues with Federal Tax Reform Watch for state level conformity issues related to bonus depreciation, Section 179 expensing, business expense limitation, repatriation and dividend received deductions. RKL’s state and local tax advisors continue to monitor action at the state level to adapt to the new federal tax law. Beyond the various dates for key individual and business tax returns, included at the start of this guide and included in the below chart, there are a number of other important tax-related dates business owners must adhere to. Keep in mind the due date for C Corporations with fiscal year ending on June 30 remains the 15th day of the third month after the end of the fiscal year. Any change to that due date has been deferred until December 31, 2025. Some of the tax forms listed below, like Forms 1094-C/1095-C, W-2 and 1099, are informational returns required by the IRS. While there is no tax payment associated with these filings, there are financial penalties and consequences for late submission or failure to file. Forms 1094 and1095 are both required under the Affordable Care Act (ACA). 1094-C proves to the IRS that applicable large employers fulfilled their requirements under the ACA’s Employer Shared Responsibility Mandate. Employers must provide 1095-C to their employees to help them demonstrate that they met the minimum essential coverage mandate under the ACA. As previously noted, tax reform’s repeal of the ACA’s individual mandate does not take effect until December 31, 2018. As such, returns submitted for tax year 2018 that do not report full-year coverage, report a shared responsibility payment or claim a coverage exemption will be rejected by the IRS as incomplete and inaccurate. KEY FILINGS & DEADLINES FOR BUSINESS TAXPAYERS BUSINESS TAX TYPE DUE DATE(S) (for calendar year entities) Forms 1094-C and 1095-C January 31, 2019 to employees February 28, 2019 to IRS if filing hard copy April 1, 2019 to IRS if e-filing Form 1099 January 31, 2019 to recipients February 28, 2019 to IRS if filing hard copy April 1, 2019 to IRS if e-filing Forms W-2, W-3 and 1099-MISC (Box 7 – Nonemployee compensation) January 31, 2019 to employees/recipients, Social Security Administration and IRS if filing hard copy or e-filing Partnerships (Form 1065) & S Corporations (Form 1120S) March 15, 2019 Individuals (Form 1040), C Corporations (Form 1120) and Trusts and Estates (Form 1041) April 15, 2019 Tax-exempt nonprofit organizations (Form 990) May 15, 2019 Employee Benefit Plans (Form 5500) July 31, 2019 Filing extensions for partnerships & S Corporations September 16, 2019 Filing extension for trust and estates October 1, 2019 Filing extensions for individuals, C Corporations and Employee Benefit Plans October 15, 2019 Filing extension for tax-exempt nonprofit organizations November 15, 2019