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. For cash basis taxpayers, you are generally only allowed to deduct expenses in the year they are paid but there is an exception for retirement plan contributions. These contributions can be accrued and deducted on your 2022 tax returns (similar to accrual basis taxpayers) as long as they are paid by the due date of the return, including extension. Take the time now to review your accrued compensation liabilities and ensure that any are paid on time. Consult with your tax professional if you have any questions.