Upcoming U.S. Tax Filings

The new year brings with it several filing requirements for U.S. businesses. For your convenience, we have prepared a comprehensive calendar with all relevant tax dates for your U.S. company. Download the 2018 Tax Calendar.

January deadlines due

While some filings are due only after the 2017 financial statements have been issued, there are some forms already due in January. To get started, your tax advisor will request specific information to correctly file these forms on your company’s behalf. We believe it is very beneficial for the clients to understand the purpose of each form to determine its relevancy.

Here’s a more detailed explanation about two such forms which require your immediate attention:

A. FORM 1099 – MISC

This form is intended to provide the IRS with information regarding payments made in 2017 to your various service providers:

File this form for payment for:

1. Any non-employee who received $600 or more, whether in cash, stock or options

2. Director fees

3. Attorney fees

4. Stock option exercises by consultants

5. Rent expenses paid to parties other than an agent or property manager

6. Medical and health care payments, including insurance

No requirement to file for:

1. Payments made via credit card

2. Payments made to corporations (other than attorneys or medical care)

3. Reimbursed expenses

4. Payments for goods, telephone service, shipping, storage etc.

Filing process (executed by your Tax Advisor):

1. Review the Forms W-9 on record from your various service providers to determine filing requirements

2. Perform TIN Check – IRS tax identification number confirmation

3. Calculate cash payments transferred in 2017

4. Furnish a copy of 1099-MISC to recipient by Jan 31st

5. File electronically with the IRS by April 2nd

B. FORM 3921 – ISO EXERCISE

This form is for companies that distributed ISOs (incentive stock options) at any time, provided that the employee exercised these option in 2017. It sets your employees on the path to receive beneficial capital gain tax treatment (vs. ordinary income tax treatment) on their qualified options. The Form 3921 notifies the IRS of the timing and value of the ISO exercise.

Reporting required for:

1. Exercise of qualified options, known as ISOs or Incentive Stock Options.

2. All recipients who are U.S. citizens, including employees of the Israeli entity.

Filing process (executed by your Tax Advisor):

1. Review option plan and grant letter to ensure ISO qualifications

2. Determine the following information:

• Date of grant

• Date of exercise

• Number of options exercised

• Exercise price

• Fair market value

1. Furnish a copy of Form 3921 to employee by Jan 31st

2. File electronically with the IRS by April 2nd