When are my taxes due???

With all the changes in the tax rules and regs, such as…

New reporting requirements like Form 1099K…

New questions about rental property on Schedule E…

New information reporting requirements on Schedule C…

And still one of the questions I continue to get most often is…

"When is that return due again???"

Here’s the deal:

The due date for your business tax return depends on your selection of business entity. Here are the possibilities, assuming that your business has a normal calendar year-end of December 31:

Sole Proprietorships. If you are the sole owner an unincorporated business, the Internal Revenue Service classifies you as a sole proprietor. This means you are not a corporation or a partnership or limited liability company treated as a corporation or a partnership. Sole proprietors file their business tax return as part of their personal Federal Form 1040 on Schedule C. Other forms may also be required, such as Schedule SE (if you have profit of at least $400), Form 4562 (if you purchase business assets such as computers or other equipment), and Form 8829 (if you take the home office deduction).

Since you are filing your business return as part of your personal return, it is due on April 15.  Should the 15th fall on the weekend, then the return will be due on the following Monday.  If you file an extension using Form 4868, the deadline is moved to October 15.

Partnerships. A partnership must also file its business income tax return by April 15. If you want to extend the due date, file Form 7004 to move the due date to September 15.

Corporations. C Corporations should file Form 1120 by March 15. S Corporations should file Form 1120S by March 15. Corporations are granted a six-month extension by filing Form 7004, thereby moving the due date to September 15.

Limited Liability Companies (LLC). An LLC is the chameleon of business entities – it can choose to be taxed like any of the above-mentioned entities. A single-member LLC can be taxed like a sole proprietorship, a C Corporation or an S Corporation. A multi-member LLC can be taxed like a partnership, a C Corporation or an S Corporation. However your particular LLC has chosen to be taxed will determine what business tax return form to file and the corresponding due date will apply.

It’s also important to keep in mind that filing an extension for any type of business income tax return does not grant an extension of time to pay any tax due. If you have a balance due on an extended return, you will likely incur a late payment penalty. This is not a late filing penalty; that is avoided by virtue of filing the extension form on time. But you can incur a late payment penalty if the balance due is not paid by the original tax return due date. So if you anticipate having a balance due, it is best to estimate that amount and pay it by the original due date, even if you file the return by the extended due date.

And by the way, in case you’re wondering just what expenses you can deduct on those business returns…

Grab a copy of my free report 17 Deductions and Strategies the Internal Revenue Service Hopes You Don’t Know.  You can get it HERE.

Feel free to leave any comments or questions below, and as always…

Thanks for reading BillOnBusiness.net

No Comments