Major Tax Deadlines – December 2010

* December 15 - Fourth estimated tax payment for 2010 is due for calendar-year corporations.

* December 31 - Last day to set up a Keogh retirement plan for 2010. Deductible contributions for 2010 can be made any time up to the filing deadline for your 2010 return.

* December 31 - Deadline to complete 2010 tax-free gifts of up to $13,000 per recipient.

* December 31 - Deadline for paying expenses you want to be able to deduct on your 2010 income tax return.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

Payroll tax deposits: Employers generally must deposit Form 941 payroll taxes (income tax withheld from employees' pay and both the employer's and employees' share of social security taxes) on either a monthly or semiweekly deposit schedule. There are exceptions if you owe $100,000 or more on any day during a deposit period, if you owe $2,500 or less for the calendar quarter, or if your estimated annual liability is $1,000 or less.

* Monthly depositors are required to deposit payroll taxes accumulated within a calendar month by the fifteenth of the following month.

* Semiweekly depositors generally must deposit payroll taxes on Wednesdays or Fridays, depending on when wages are paid.

For more information on tax deadlines that apply to you or your business, contact our office by phone at 408-879-9990 or by email at cpa@cpasllp.com. You can also visit our website www.cpasllp.com for more details.