What You Need to Know About Tax Day 2023

Now that we rang in the New Year, it’s time to start thinking about Tax Day 2023. Below is a breakdown and general timing for everything you need to know about your 2022 tax deadlines for the 2023 calendar year.

As a reminder, and pertaining to all tax return deadlines noted below, if you started a 1031 exchange in 2022, but your 180-day exchange period ends after your tax return deadline noted below, you will need to file an extension in order to receive the full 180-day exchange period. If you do not file an extension, your 1031 exchange deadline becomes the date your tax return is due.

Note, if you use a fiscal year, you will need to change some dates, visit the IRS Website for more information.

January

• Employers generate and provide all employees with copies of their Form W-2, Form 1099s, etc. no later than January 31, 2023.
   
• Accounting and Treasury departments close out the previous year.
   
• January 17, 2023: Individuals that didn’t pay income tax for 2022 through withholding, or didn’t pay enough tax, should make a payment of the estimated tax at this time; OR
   
• January 31, 2023: Individuals, can file their 2022 tax return and pay all taxes due to prevent any penalty for late payments.

March

• March 1, 2023: Farmers, Ranchers, and Fishermen, should file their 2022 income tax return (Form 1040 or 1040-SR) and pay all tax due. If you paid your 2022 estimated tax by January 17, 2023, you can wait to file your return until April 18, 2023.
   
• March 15, 2023: Partnerships and S corporations, must file a 2022 calendar year return (Form 1065) and provide each partnership with a copy of their Schedule K-1 (Form 1065) and if applicable Scheduled K-3. If needed, file Form 7004 for an automatic 6-month extension to file the return.
   
• If a 1031 exchange was completed, the taxpayer must submit a Form 8824 along with the 2022 tax return.
   
• If a 1031 exchange was started in 2022, but not completed until 2023 (by your tax return deadline), you must file a Form 6252 to provide the IRS with information related to their receipt of the 1099 showing the sale of Those certain items of real and/or personal property described in the relinquished property contract and qualifying as “relinquished property” within the meaning of Treasury Regulations Section 1.1031(k)-1(a); The "Old Asset”, property or properties given up or conveyed by a taxpayer as part of a 1031 exchange. Relinquished Property in 2022. In other words, without further tax filing, the Service would be expecting that tax reporting related to the 1099 to be done in 2022.
   
• If a 1031 exchange was started in 2021, but completed, or failed, in 2022 the default reporting is to report the exchange transaction in the 2nd year (2022). However, if you have losses in the 1st year (2021), you can elect to treat the exchange as though it took place in 1st year.

April

• April 18, 2023: Individuals, living and working in the US, must file their 2022 tax return, Form 1040 or 1040-SR and pay any tax due. If you want an automatic 6-month extension, file a Form 4868, and pay what you estimate you will owe to avoid any penalties and interest.
   
• April 18, 2023: Corporations, must file a 2022 calendar year income tax return (Form 1120) and pay any tax due. To file an automatic 6-month extension file Form 7004 and deposit what you estimate you owe in taxes to avoid any penalties and interest.
   
• If a 1031 exchange was completed, the taxpayer must submit a Form 8824 along with the 2022 tax return.
   
• If a 1031 exchange was started in 2022, but not completed until 2023 (by your tax return deadline), you must file a Form 6252 to provide the IRS with information related to their receipt of the 1099 showing the sale of Those certain items of real and/or personal property described in the relinquished property contract and qualifying as “relinquished property” within the meaning of Treasury Regulations Section 1.1031(k)-1(a); The "Old Asset”, property or properties given up or conveyed by a taxpayer as part of a 1031 exchange. Relinquished Property in 2022. In other words, without further tax filing, the Service would be expecting that tax reporting related to the 1099 to be done in 2022.
   
• If a 1031 exchange was started in 2021, but completed, or failed, in 2022 the default reporting is to report the exchange transaction in the 2nd year (2022). However, if you have losses in the 1st year (2021), you can elect to treat the exchange as though it took place in 1st year.

June

• June 15, 2023: Individuals, US citizens or residents living and working outside the United States and Puerto Rico, must file their 2022 tax return, Form 1040 or Form 1040-SR and pay any tax, interest, and penalties due. For an extension, file Form 4868 to obtain 4 additional months to file your return, but pay the estimated taxes owed to avoid penalties and interest.
   
• If a 1031 exchange was completed, the taxpayer must submit a Form 8824 along with the 2022 tax return.

September

• September 15, 2023: Partnerships and S corporations, if you requested a timely 6-month extension back on March 15, 2023, you must now file your 2022 calendar year return, Form 1065, and pay any difference in tax owed from the payment you made back in March.
   
• If a 1031 exchange was completed, the entity must submit a Form 8824 along with the 2022 tax return.
   
• If a 1031 exchange was started in 2022, but not completed until 2023 (by your tax return deadline), you must file a Form 6252 to provide the IRS with information related to their receipt of the 1099 showing the sale of Those certain items of real and/or personal property described in the relinquished property contract and qualifying as “relinquished property” within the meaning of Treasury Regulations Section 1.1031(k)-1(a); The "Old Asset”, property or properties given up or conveyed by a taxpayer as part of a 1031 exchange. Relinquished Property in 2022. In other words, without further tax filing, the Service would be expecting that tax reporting related to the 1099 to be done in 2022.
   
• If a 1031 exchange was started in 2021, but completed, or failed, in 2022 the default reporting is to report the exchange transaction in the 2nd year (2022). However, if you have losses in the 1st year (2021), you can elect to treat the exchange as though it took place in 1st year.

October

• October 16, 2023: Corporations, if you filed an extension back in April, you must now file your 2022 calendar.
   
• If a 1031 exchange was completed, the entity must submit a Form 8824 along with the 2022 tax return.
   
• If a 1031 exchange was started in 2022, but not completed until 2023 (by your tax return deadline), you must file a Form 6252 to provide the IRS with information related to their receipt of the 1099 showing the sale of Those certain items of real and/or personal property described in the relinquished property contract and qualifying as “relinquished property” within the meaning of Treasury Regulations Section 1.1031(k)-1(a); The "Old Asset”, property or properties given up or conveyed by a taxpayer as part of a 1031 exchange. Relinquished Property in 2022. In other words, without further tax filing, the Service would be expecting that tax reporting related to the 1099 to be done in 2022.
   
• If a 1031 exchange was started in 2021, but completed, or failed, in 2022 the default reporting is to report the exchange transaction in the 2nd year (2022). However, if you have losses in the 1st year (2021), you can elect to treat the exchange as though it took place in 1st year.

For a more detailed breakdown of all tax items over the calendar year, please visit the IRS Website.

If you need more information on the above, or have specific questions in regard to your 2022 taxes you should consult with your CPA or tax advisor.

Source: https://www.irs.gov/pub/irs-dft/p509--dft.pdf