March 15th Deadline and Deductibility of Accrued Compensation

March 15th Deadline and Deductibility of Accrued Compensation

As we approach the March 15th filing deadline for S Corporations and Partnerships, a friendly reminder to accrual basis taxpayers that accrued compensation for bonuses or employer retirement plan contributions for the previous year must be paid by March 15th (or September 15th for retirement plan contributions if the returns are on extension). Failure to pay by this deadline may result in not being able to deduct the expense on the 2022 tax returns and could result in additional tax liability.

Shaun DaCunha

Shaun DaCunha

Shaun is a Managing Partner of the Firm and has over 12 years of experience in public accounting with both large and small-sized firms, along with three years in private industry as a controller. His experience in public and private industry gives him a unique perspective and understanding of business needs and challenges.