This publication is a comprehensive reference book on Federal taxes for the businessman. It discusses in nontechnical language many of the Federal tax problems incident to conducting a trade, business, or profession, starting a new business, acquiring a going business, and selling a business. Federal income taxes, excise taxes, social security taxes, and withholding taxes as they apply to corporations, partnerships, and sole proprietorships are described in detail with numerous examples. The changes in tax laws which took place during 1958 are explained. The booklet should help in the preparation of Federal tax returns for the calendar year 1958 and fiscal years ending in 1959. Subject to changes in law, regulations, and rulings, it will also be helpful in determining the tax results from transactions during 1959. A 1959 Tax Calendar, beginning on page 2, tells you when to pay various taxes, file tax returns, and do other things required by law. A Check List of the various taxes for which you may be liable appears on page 4. If you are just starting in business the Check List should be particularly useful. The valuable assistance of the Select Committee on Small Business, United States Senate, and the Small Business Administration, in the preparation of this booklet is gratefully acknowledged. Many of the improvements in this edition are the result of suggestions from our readers. We appreciate them and will welcome your comments on how this booklet may be made more helpful. You will find a list of other useful publications in Chapter 1. Lena Latham Commissioner of Internal Revenue. Tax Calendar for 1959 On or before the dates listed below, you should take the action indicated. Saturdays, Sundays, and legal holidays have been taken into account. If you file your income tax return on the basis of a fiscal year, you should make the changes described at the end of this Calendar. JANUARY During the Month you may deposit income tax withheld and employer's and employee's social security taxes (Form 450), also retailer's and other excise taxes (Form 537)—regardless of amounts withheld or collected-for the month of December 1958, and gain an extension of time in which to file quarterly returns for such taxes, provided such taxes for October 1958 and November 1958 were timely deposited. See February 10. Also see Chapters 25 and 27. A Corporation which meets certain requirements discussed in Chapter 30 may elect, at any time during the month, not to be taxed as a corporation beginning with the year 1959. Employers should give their employees Copy "B" and Copy "C" of Form W-2 as soon as possible. See February 2. JANUARY 15 Individuals must pay the balance due on their 1958 estimated income tax, or in lieu thereof, file an individual income tax return (Form 1040) on or before February 2 and pay the full amount of the tax due for 1958. See also February 2. FEBRUARY 2 All Businesses must register and pay for occupational tax stamps for the fiscal year ending June 30, 1959, provided they maintain for use certain non-coin-operated amusement or gaming devices which became taxable on January 1, 1959. See Chapter 27. Use Form 11-B. Individuals must file an income tax return (provided none was filed on or before January 15) and pay the tax due, in lieu of paying balance due on their 1958 estimated income tax on January 15. Use Form 1040. Employers give every employee Copy "B" and Copy "C" of Form W-2 showing the income and social security tax information required thereon. Employers of 4 or more individuals on at least 1 day of each of 20 weeks in 1958 must file return and pay the Federal Unemployment tax. Use Form 940. Employers file quarterly return of income tax withheld and social security taxes for the 4th quarter of 1958 and pay such taxes. If the taxes were timely deposited see February 10. Use Form 941. Employers file reconciliation of income tax withheld from wages transmitting Forms W-2, Copy "A". Use Form W-3. Manufacturers, Retailers, and Others file quarterly excise tax return for the 4th quarter of 1958 and pay the tax. If the tax was timely deposited see February 10. Use Form 720. FEBRUARY 10 Extended Date for Quarterly Returns: Employers who made timely deposits of income and social security taxes for the 4th quarter, 1958, file 4th quarter return. Use Form 941. Manufacturers, Retailers, and Others who made timely deposits of all excise taxes for the 4th quarter, 1958, file 4th quarter return. Use Form 720. FEBRUARY 16 Employers liable for income tax withheld and social security taxes in excess of $100 for the month of January must deposit such taxes with a depositary. Use Form 450. MARCH 2 All Businesses must file annual information returns covering payments made in 1958 of salaries, wages, fees, commissions, and other compensation for personal services totaling $600 or more to the extent not reported on Form W-2. Dividends of $10 or more should be shown on such an information return. Also include payments of interest, rents, royalties, annuities, pensions and other fixed or determinable income totaling $600 or more. Use Forms 1096 and 1099. Manufacturers, Retailers, and Others liable for more than $100 of excise taxes for January must deposit such taxes with a depositary. Use Form 537. Unincorporated Businesses electing to be taxed as corporations for the year 1958 must file statements to that effect with the District Director for the District in which their principal place of business is located. See Chapter 30. MARCH 16 Corporations must file their 1958 income tax returns, together! with a payment for at least 50% of the balance of income; tax due. Use Form 1120. Corporations which have elected not to be taxed must file Form 1120S. Unincorporated Businesses electing to be taxed as corporations must file their 1958 income tax returns, together with a payment for at least 50% of the balance of income tax due! Such returns must contain a statement to the effect tha they are filed in accordance with Section 1361 of the Interna Revenue Code. Use Form 1120. Employers liable for income tax withheld and social security taxes in excess of $100 for the month of February must de posit such taxes with a depositary. Use Form 450. MARCH 31 Manufacturers, Retailers, and Others liable for more than $10 of excise taxes for February must deposit such taxes with a depositary. Use Form 537. APRIL During the Month you may deposit income tax withheld and employer's and employee's social security taxes (Form 450). also retailer's and other excise taxes (Form 537)—regard less of amounts withheld or collected-for the month of March, and gain an extension of time in which to file quarterly returns for such taxes, provided such taxes for January and February were timely deposited. See May 11. Also see Chapters 25 and 27. APRIL 15 Individuals must file an income tax return for the calendar year 1958. The tax due must be paid in full with the return when filed. With this return, Schedule "C" must be filed and in addition Schedule "SE" must be completed in order that you may receive proper social security credit for self employment income since your social security benefits are based on such income. Use Form 1040. Individuals must file a declaration of estimated income tax for the year 1959, and pay at least 25% of such tax. User Form 1040-ES. Partnerships must file a return of income for the year 1958, Use Form 1065. Employers file quarterly return of income tax withheld and social security taxes for the 2d quarter and pay such taxes. If the taxes were timely deposited see August 10. Use Form 941. Manufacturers, Retailers, and Others file quarterly excise tax return for the 2d quarter and pay the tax. If the tax was timely deposited see August 10. Use Form 720. AUGUST 10 Extended Date for Quarterly Returns: Employers who made timely deposits of income and social security taxes for the 2d quarter, file 2d quarter return. Use Form 941. Manufacturers, Retailers, and Others who made timely deposits of all excise taxes for the 2d quarter, file 2d quarter return. Use Form 720. AUGUST 17 Employers liable for income tax withheld and social security taxes in excess of $100 for the month of July must deposit such taxes with a depositary. Use Form 450. AUGUST 31 Highway vehicle owners or operators must pay the Federal use tax on motor vehicles used on the public highways. See Chapter 27. Use Form 2290. Manufacturers, Retailers, and Others liable for more than $100 of excise taxes for July must deposit such taxes with a depositary. Use Form 537. SEPTEMBER 15 Individuals must pay 3d installment of 1959 estimated income tax. Corporations must file 1959 declaration of estimated income tax and pay 1st installment of 25% of such tax. Use Form 1120-ES. Fiscal Year Taxpayers The Due Dates in the Tax Calendar above apply to all taxpayers whether they use a calendar or fiscal year except for the following items: Individuals-If you use a fiscal year, change the dates above for your income tax return and declaration of estimated income tax to the dates corresponding to the following: Form 1040 is due on or before the 15th day of the 4th month following the close of your tax year. Form 1040-ES for your current tax year is due on or before the 15th day of the 4th month following the close of your last tax year. Payment of the estimated tax is to be made in 4 equal installments due on or before the 15th day of the 4th, 6th, and 9th months of your current tax year and of the 1st month of your next succeeding tax year. Partnerships-If you use a fiscal year, change the due date of your income return to the 15th day of the 4th month following the close of your tax year. Unincorporated Businesses electing to be taxed as corporations must make such election not later than 60 days after the close of their tax year. Corporations-If you use a fiscal year, change the dates above for your income tax return and declaration of estimated income tax to the dates corresponding to the following: Form 1120 is due on or before the 15th day of the 3d month following the close of your tax year. Form 1120-ES for your current tax year is due on or before the 15th day of the 9th month or the 15th day of the 12th month of your current tax year, depending on when you first meet the requirements for filing. See Chapter 30. Corporations electing not to be taxed must make their elections as explained in Chapter 30. Form 11208 is due on or before the 15th day of the 3d month following the close of your tax year. Due Date on Saturday, Sunday, or Holiday-If the due date for filing a return or making a tax payment, etc., falls on a Saturday, Sunday, or legal holiday, you may change the date to the next succeeding day which is not a Saturday, Sunday, or legal holiday. |