Tax Reform: Impact on Businesses

The recently enacted tax reform legislation represents the most significant overhaul of our tax laws in over 30 years. The act contains substantial changes to the taxation of businesses, individuals, multi-national companies, tax-exempt organizations and others. For more information on how this legislation will affect your business, check out our recent article, where we break down hot topics such as the corporate tax rate, pass-through income, and how you can move forward with an informed approach.

 

Pass-Through Entity February Withholding Requirements

This is just a reminder that there are some February due dates for certain pass-through entity withholding related filings

Michigan Flow-Through Withholding Annual Reconciliation –
Flow-through entities (FTEs) that are required to withhold on members that are non-resident individuals or corporations are also required to file an annual reconciliation using Form 4918, Annual Flow-Through Withholding Reconciliation Return. This return is in addition to the quarterly filing of Form 4917, Flow-Through Withholding Quarterly Return. The annual reconciliation is due to the Department on February 28th, or the last day of the second month following the end of the tax year for fiscal year FTEs.

Wisconsin Pass-Through Entity Withholding Exemption –
Pass-through entities, other than S corporations, may file an annual exemption withholding affidavit (Form PW-2) within two months following the close of the entity’s taxable year, February 28th for a calendar year entity. The deadline for filing this exemption for S corporations was January 31st for entities with a calendar year end (within one month following the close of the S corporation’s taxable year).