Your Guide to Business Tax Deadlines

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What if your business missed a major tax deadline and you didn’t even know it?

Tax deadlines are even more important for businesses than they are for individuals. Unfortunately, many business owners don’t understand these deadlines until it’s too late.

Want to keep your business out of the IRS crosshairs? Keep reading to learn everything you need to know about tax deadlines!

W-2 and 1099 Forms: Employee Deadline

In many cases, one date may serve as a deadline for multiple tax-related functions. For example, January 31st, 2020, is an important deadline for both W-2 and 1099 forms.

For W-2s, this is the last day to send copies to your employees. It is also the last day to file these records with the IRS.

This also serves as the deadline to submit 1099 forms to any of your individual contractors. Before you do so, make sure you understand who needs a W-2 and who needs a 1099!

Speaking of the 1099 form, you have until February 29th (it’s a leap year), 2020, to submit 1099 information returns to the IRS. You will need IRS Form 1096 to complete your filing.

Filing Deadlines

As an individual taxpayer, you probably imagine April 15th as the primary “tax day.” However, things are different for your business.

If you are filing your taxes electronically, you will have until April 1st, 2020, to send everything in. But if you are not filing electronically, you must actually mail everything in by February 29th.

Should you miss a deadline by a small amount, the penalty is likely to be light (see more information below). But knowing the exact dates and following them is a good way to save money and stay in good standing with the IRS.

Different Types of Returns

Most individual tax filings are very similar. However, the exact business tax return you must submit depends on the type of business that you own.

Below, we have detailed the different kinds of businesses. It is important to file the correct tax return, so make sure you know which one applies to you!

Limited Liability Company

A limited liability company (or LLC) is one of the safest kinds of businesses you can run. The purpose of such a company is to limit your own liability. This can keep you out of debt even if your business goes under!

An LLC is a good compromise if you are not ready (or willing) to run your business as a corporation. Your LLC tax return is due by April 1st so long as you are filing electronically.

Corporation

If an LLC is one of the safest businesses to run, what is the safest? That would be a corporation. In a corporation, your business is completely separate from your personal finances. And a corporation allows you to sell stock and grow your company by attracting investors.

An S-Corp is a variation of a traditional corporation. In an S-Corp, both profits and losses are filtered through the tax returns of individual shareholders.

Corporations come with a lot of paperwork and regulations, but it’s a great way to grow a small business. Corporate tax returns are due by April 1st when you file electronically. Meanwhile, S-Corp returns are due by March 15th.

Partnership

A partnership works in a similar manner to an S-Corp. While the business must submit its own tax return, the partners’ individual tax returns absorb the profits and losses of the business.

You will most likely use the Schedule K-1 to process this return. As always, we recommend you consult with a tax professional if you are unsure of which kinds of forms and paperwork you must complete.

These returns, like other business returns, are due by March 15th, 2020.

Sole Proprietorship

A sole proprietorship is like the mirror image of an LLC. As with an LLC, you can set this business up on your own. Unlike an LLC, you will be personally liable for any debts and losses incurred by your business.

You can usually complete such a return by using the Schedule C form. Even though you share liability with your business, don’t forget that this return must be filed electronically by April 1st and not the individual deadline of April 15th.

Estimated Tax Payments

Sometimes, your tax deadline is not limited to a single date. This is the case when it comes to estimated tax payments.

Certain businesses must pay estimated taxes at different times throughout the year. If your business must pay such taxes, there are 4 important dates for you to remember.

The first estimated tax payment date is April 15th. The second is June 15th. The third is September 15th and the final date is January 15th of the following year.

What About Extensions?

Just like with individual taxes, not every business can pay what they owe exactly when they owe it. What do you do when this happens? Your best bet is to file an extension.

You can file for an extension with the IRS. If the extension is approved, then you receive an additional 6 months to make your payments.

Make sure to add 6 months to whatever the original due date was. That means that partnerships and S-Corpors that receive extensions will pay quicker than corporations that receive extensions.

What If I Miss A Deadline?

Here’s a question that can make both individual taxpayers and business owners wince: what happens if you are unable to make your payment on time?

In most cases, you must only pay a small financial penalty. In fact, the most common penalty is that you must pay some interest on the amount of money that you owe.

Such a penalty is usually not enough to seriously harm a business. Nonetheless, it’s worth getting your paperwork right and taking care of unfiled tax returns to stay off the IRS radar for as long as possible!

Tax Deadlines: Professional Assistance

If you’re worried about tax deadlines, you need more than a few answers. You need the kind of professionals who make those worries go away.

At Silver Tax Group, we are the best tax attorneys in the game. To see how we can help with everything from filings to audits, contact us today!

Managing Partner of Silver Tax Group, author of the book “Stop the IRS”. Practicing a variety of tax issues, regulations, laws and rights. Specializing exclusively on tax matters involving IRS audits, negotiation, settlements & compromises.

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