As a small business owner, navigating tax deadlines and requirements can be overwhelming – especially when you’re juggling so many responsibilities already. Staying on top of those deadlines is essential to avoid penalties and maintain compliance with the latest tax laws. Knowing where those deadlines fall and how to leverage extensions when needed can make a significant difference in your business’s financial health.
When are my business taxes due?
When your business taxes are due depends on how your business is organized. For partnerships, LLCs that are taxed as a partnership and S-corporations, the tax filing deadline is March 15th. For sole proprietors, LLCs that are taxed as a sole proprietor or C-corporations, the tax filing deadline is April 15th.
While filing your taxes by the deadline is very important, that date is not the only important date for small business owners to remember. Here are all of the important small business tax dates at a glance…
January 16, 2024: Fourth quarter estimated quarterly tax payment (2023) is due.
January 31, 2024: W-2 forms must be sent to employees.
January 31, 2024: 1099 forms must be sent to non-employees that you made payments to during 2023.
March 15, 2024: Form 1065 (partnerships and multi-member LLCs) and Form 1120S (S-corporations) are due.
March 15, 2024: Deadline to file an extension request for partnerships and S-corporations.
April 15, 2024: Schedule C, Form 1040 (sole proprietors) and Form 1120 (C-corporations) are due.
April 15, 2024: Deadline to file an extension request for sole proprietors and C-corporations.
April 15, 2024: First quarter estimated quarterly tax payment is due.
June 17, 2024: Second quarter estimated quarterly tax payment is due.
September 16, 2024: Extended deadline for partnership and S-corporation returns.
September 16, 2024: Third quarter estimated quarterly tax payment is due.
October 15, 2024: Extended deadline for sole proprietor and C-corporation returns.
January 15, 2025: Fourth quarter estimated quarterly tax payment is due.
What do I do if I need to request an extension?
If you’re not sure you’ll be able to file by the deadline, you should consider requesting an extension.
Sole proprietors can apply for an extension using IRS Form 4868. This form must be filed no later than April 15th.
Partnerships, S-corporations and C-corporations can request an extension using IRS Form 7004. This form must be filed no later than March 15th for partnerships and S-corporations. C-corporations must file this form no later than April 15th.
If the extension is granted, you’ll receive a 6-month extension on your tax filing. For partnerships and S-corporations, the extended tax filing deadline is September 15th. For sole proprietors and C-corporations, the extended tax filing deadline is October 15th.
It’s important to note that this extension is for your tax filing only. If you owe any taxes, those obligations will still need to be paid by the original tax filing date or it could result in fines and penalties.
What happens if I miss the business tax deadline?
If you missed your tax filing or extension deadline, the IRS will impose penalties and interest on any unpaid tax obligations.
If you don’t file your tax return by the due date, the IRS will assess a failure to file penalty. If you don’t pay your tax obligation by the due date, the IRS will assess a failure to pay penalty. You can be subject to both penalties.
The failure to file penalty is calculated as 5% of the unpaid taxes owed for each month or part of a month that the return is late. This penalty does max out at 25% of your unpaid taxes.
The failure to pay penalty is calculated as 0.5% of the unpaid taxes owed for each month or part of a month that the tax obligation remains unpaid. Like the failure to file penalty, this penalty also maxes out at 25% of your unpaid taxes.
If both penalties are applied in the same month, the failure to file penalty is reduced by the failure to pay penalty. So, the total penalty for the month would be 5% – 4.5% is failure to file and 0.5% is failure to pay.
Staying informed, planning ahead and seeking assistance when needed are essential to successfully navigating the confusing landscape of tax obligations for small businesses. By employing a proactive approach to managing your business’s taxes, whether you’re managing them yourself or with the assistance of a professional, you’ll not only fulfill your tax obligations but also have opportunities to optimize tax planning strategies to minimize your liabilities and maximize your savings in the future.
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