First of all, filing taxes is perhaps the most important thing that goes into running a business. It’s also one of the most frequently forgotten duties — even if you know the basic deadlines, they still seem to sneak up earlier and earlier each year, and before you know it, the deadline has arrived.
At Hacker Accounting, we frequently work with businesses that cut it close on filing deadlines. Failure to file your business taxes on time can have serious consequences, like fines or massive amounts of accrued interest, and we hate to see that happen to anyone or their business. So we’ve compiled a list important tax deadlines to help you prepare for the upcoming tax season.
February 2: Deadline for businesses to mail Form W2s to employees or Form 1099-MISCs to non-employees.
March 2: Deadline for businesses to mail Form W2s and Form 1099s to the IRS.
March 15: Deadline for filing if you are a:
- Corporation. Use Form 1120.
- Cooperative Association. Use Form 1120-C.
- Homeowners Association. Use Form 1120-H.
- Real Estate Investment Trust. Use Form 1120-REIT.
- S-Corporation. Use Form 1120-S.
April 15: Deadline for filing if you are a:
- Sole Proprietorship or Single-member LLC. Use a Form 1040.
- Estate or Trust. FIle a Form 1041.
- Partnership. FIle a Form 1065.
- Real Estate Mortgage Investment Conduit. Use Form 1066.
September 15: Final deadline to file corporate, trust income, and partnership tax returns if granted an extension.
What if I Miss the Deadline?
Additionally, if you miss the deadlines for filing, you may be fined and charged interest on the amount you owe. Interest accrues at 0.5 percent for each month until paid up to 25 percent. If self-employed, you will not receive Social Security credits or disability benefits until your taxes are paid. The IRS may also file a substitute return for you using a potentially incorrect estimate of your tax credits and liabilities, which could mean you end up paying more than you would otherwise need to. After that, the debt will be incollection, which reflects poorly on your credit report and could land you in legal hot water if ignored or left unpaid.
File an Extension
Furthermore, if you think you will be unable to file your taxes by the deadline, we strongly urge you to file for an extension by the deadline that you would normally be required to file your taxes. A business tax extension will give you 5 to 6 more months to file, depending on your business type. Your extension will begin on the date that taxes were originally due. You may also be charged a file fee when requesting an extension.
If you own a sole proprietorship or a single-member LLC, do not request a business tax extension. Your business activities will be reported on your personal tax forms, so if you need an extension, request a personal extension.
In conclusion, if you need help filing your business taxes or a business tax extension, give Hacker Accounting a call at 602-375-5251.