Your Guide to Investment Club Taxes for 2023
Here are important details for the 2023 tax year regarding IRS and state tax returns for clubs.
Proper preparation can eliminate stress from the process of filing your investment club's tax returns. Here are important details for the 2023 tax year regarding IRS and state tax returns for clubs. Please make sure that your club members and treasurer have access to the information in this guide!
Club Tax Basics
The IRS and about half of all U.S. states require partnerships to file annual tax returns. Since most investment clubs are formed as partnerships, they fall under these legal filing requirements, and there are absolutely no current filing exceptions with big penalties levied for non-compliance.
Investing partnerships usually do not pay any taxes directly, but members are responsible for their share of club tax liabilities on their personal federal and state tax returns.
Brokerage firms must provide clients with the details of all relevant tax year activity on Form 1099 by February 15th (though it is not uncommon for these to be delayed). The information on Form 1099 is required before a club can prepare a federal tax return or report to its members.
Partnerships must report partners’ tax liabilities on IRS Schedule K-1 (and in some cases also on Schedule K-3). These must be issued by March 15th to anyone who was a partner in the tax year so that these partners have the information required for their personal tax returns.
March 15th is also the deadline for partnerships to file their IRS returns. This date is also used by some, but not all, states. If you are unsure of your ability to meet this deadline, you can usually request an extension. Read more on investment club tax basics.
What’s New for 2023
At this point, there appear to be no regulatory or rules changes that impact IRS Form 1065 and related schedules commonly used by clubs. However, until the IRS releases final forms for the 2023 tax year, nothing is for certain! You can rely on our team to continue to monitor for changes that affect clubs and let you know any items that require your attention.
Attending our tax-related webinars (or viewing them on our YouTube channel after the live presentation) is a great way to keep up to date with tax issues and the myICLUB.com Club Tax Printers. See below for dates.
Investment Club Tax Calendar
- 12/19/23: "Closing the Club's Books at Year-End" webinar.
- 1/16/24: "Preparing Club Taxes" webinar.
- 2/15/24: Delivery deadline for brokerage 1099s.
- 2/20/24: "Club Tax Clinic" webinar.
- 3/15/24: Deadline for providing K-1s to club members.
- 3/15/24: Deadline for filing IRS Form 1065.
Using the myICLUB.com Club Tax Printers
Despite the complexity of tax regulations for partnerships, the myICLUB.com Club Tax Printers make it a snap to complete and file a club’s federal and state returns (for 16 supported states), all at a reasonable cost when compared to the high charged by professional tax preparers.
Each year, the IRS and states change their requirements and release new tax forms. This means that the myICLUB.com Club Tax Printer must be updated each year (often significantly).
The myICLUB.com Club Tax Printers may be released at any point between January and March, depending on when appropriate IRS and state approvals are received. You can check the status of federal or any state returns on the myICLUB.com homepage during tax season, or in the myICLUB.com Tax Center.
To pre-order the state and/or federal version of the 2023 Club Tax Printers, a club’s officer should visit the Taxes tab in your club’s myICLUB.com website.
Say "Yes!" to e-Filing
The myICLUB.com Club Tax Printer supports e-Filing for the IRS and a growing number of states. We recommend filing electronically if at all possible to save on printing and mailing costs and ensure that you meet filing deadlines.
Getting Help During Tax Season
ICLUBcentral typically experiences high volume of traffic to our phone and online support team from December through March. For the most efficient service, here are some of the resources that are available to clubs who need help with the Club Tax Printers.
Attend Our Webinars. Registration and replay links are in the Videos section of the myICLUB.com Help & Support Center. The sessions are useful for both new and experienced treasurers. Live webinars are scheduled as follows, and replays are available on our YouTube channel after the live events.
Read the Quick Start and User Guides. These are linked at the top of the Club Tax Printers after purchase, in the File Storage area of your myICLUB.com club website, or from the myICLUB.com Help & Support Center.
Frequently Asked Questions. Our Frequently Asked Questions (FAQ) tool addresses dozens of questions about club tax preparation and the Club Tax Printers.
Submit Your Question Online. Use our Customer Support Hub to submit queries at any time of the day or night.
Call Us Toll-Free. Call 1-877-33-ICLUB (or 1-248-654-3100) from 9:30 am to 6:00 pm ET, Monday through Friday to speak to a representative.
Whether this is your first or fortieth year coping with investment club taxes, we are confident that myICLUB.com’s top-notch tools will help you and your fellow club members to prepare an accurate and timely tax return.
On behalf of all of us at myICLUB.com, we send best wishes for the upcoming holidays and our hopes for a healthy and prosperous 2024!
NOTE: Neither ICLUBcentral nor BetterInvesting provide personalized investment or tax advice to individuals or investment clubs. With respect to tax form preparation, we have done the utmost to make certain that the data that appears on tax forms produced by the myICLUB.com Investment Club Tax Printer is correct as based on the data as entered in your books. Nevertheless, we do not warrant the accuracy or completeness of the data on the completed tax forms. All responsibility for accuracy and completeness rests with your investment club and with the person who handles the tax matters for your club. In addition, you are responsible for submitting accurate and complete information when preparing your tax return and for reviewing your tax return for indications of errors prior to electronically filing or printing your return. You are responsible for knowing and meeting tax filing deadlines, and for preparing your return early enough to meet any applicable deadlines.