There are two main categories of reports that are due January 31st. The first category is that which deals with your employees. The second category is the one that deals with the payments you made during the year. Whenever you file your return, you typically want to claim every allowable expense you are entitled to, so that your tax bill is reduced. The purpose of these reports is to avoid these payments.
Estimated tax payments are the most misunderstood issue among our individual taxpayer clients. People tend to think that April 15th is tax filing and payment date. However, you may be under an obligation to make estimated tax payments based on your prior year’s tax liability.