First Quarter Tax Filing: Key Deadlines & Tasks for Business Owners

As the first quarter of 2025 draws to a close, business owners must ensure they’re on track with their tax filings, particularly when it comes to meeting important deadlines for tax payments and reporting. This guide will help you stay ahead of your tax obligations, avoid penalties, and ensure your business is prepared for tax season.

1. Review Your Estimated Tax Payments for Q1 2025

By March 31, 2025, business owners are responsible for paying their estimated taxes for the first quarter of 2025. If your business expects to owe more than $1,000 in tax for the year, the IRS requires you to make quarterly estimated tax payments.

• How to Calculate Your Estimated Tax Payments:
  Review your income and expenses for the first quarter. Use this information to estimate your taxes for the year and determine if your first-quarter payment needs to be made.

• • Use Form 1040-ES to calculate your payments.
  • If your business is an S-Corp or LLC, ensure any required shareholder or member contributions are also made.

• Key Deadline:
  The deadline for paying Q1 estimated taxes is April 15, 2025. However, the IRS recommends making the payment by March 31 to avoid any last-minute stress.

2. Submit Your Payroll Taxes

For business owners who have employees, payroll taxes (including Social Security, Medicare, and federal income tax withholding) are due quarterly. These taxes must be submitted to the IRS using Form 941.

• Payroll Tax Filing:
  • Ensure that you’ve filed Form 941 by April 30, 2025 for Q1. This form reports the wages paid and taxes withheld.
  • If you’re filing electronically, be sure to file by the end of the month, or earlier if your tax preparer suggests it.

3. Review Your Business Deductions for the First Quarter

It’s important to review your expenses and ensure that you’re taking full advantage of tax deductions available to your business. The IRS allows businesses to deduct a wide range of operating expenses, such as:

• Office Supplies
• Business Meals and Entertainment (80% of meals related to business are deductible)
• Travel Expenses (mileage, lodging, etc.)
• Equipment and Depreciation (large purchases may need to be depreciated or expensed under Section 179)
• Home Office Deduction (if applicable)
• Tip:
  Keep detailed records of all receipts and invoices related to these expenses, as they will be important when it comes time for tax filing in April.

4. Prepare for Form 1099 Reporting

If your business paid independent contractors $600 or more in 2025, you are required to file Form 1099-MISC (or Form 1099-NEC, depending on the nature of the payments).

• Action Step:
  • Make sure you’ve gathered all the required 1099 forms for contractors, and confirm their correct tax identification numbers (TINs).
  • Forms must be submitted to both the IRS and the contractors by January 31, 2026, but it’s a good idea to start preparing these forms now.
• What’s Next?
  • If you need help completing Form 1099, consult your tax preparer or accountant to ensure compliance.

5. Assess Potential Tax Credits & Deductions

• Research New Tax Credits:
  As 2025 unfolds, new tax incentives may become available to help businesses lower their tax liability. For instance, research and development (R&D) credits, energy-efficiency deductions, or credits for hiring employees from certain demographics may be applicable to your business.
• Tip:
  Look into any new credits that might apply to your industry or business practices. For example, if your business invested in energy-efficient equipment or green technologies, you could qualify for specific credits.

6. Confirm State and Local Tax Requirements

Many states have their own quarterly filing requirements, so it’s important to be aware of state-specific deadlines. In addition to federal taxes, you’ll need to submit payments for your state income tax, sales tax, and other business taxes depending on your location.

• Action Step:
  Double-check your state’s tax deadlines for the first quarter and ensure that you’re submitting any state tax forms (like Form 100 or Form 1065 for LLCs) by the state-specific due dates.

7. Schedule a Check-In with Your Accountant

The first quarter of the year is an excellent time to meet with your accountant or tax advisor to discuss the following:

• Review your current financials and ensure you’re on track for tax planning.
• Discuss potential tax-saving strategies such as accelerating deductions or contributing to retirement plans.
• Ask for advice on optimizing your tax structure for the year ahead, particularly if you’ve experienced growth in Q1.

Conclusion:

At the end of March, it’s important for business owners to stay ahead of tax deadlines, file required forms on time, and review any eligible deductions or credits. Taking care of these tasks now can help ensure a smooth tax season and avoid any penalties.

By following this First Quarter Tax Filing Checklist, you’ll have peace of mind knowing that your business is in compliance and ready for the year ahead.

Ready to get your taxes in order for Q1 and beyond? Contact us today for expert tax and accounting services to ensure your business stays on track.

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📧 Email us: dmitriy@losangelescpa.org
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