Due Date for S Corporation Tax Return: Everything You Need to Know
The due date for S corporation tax returns vary. Tax return due dates depend on the business entity filing them as well as what kind of tax is being filed.3 min read
2. Federal Taxes
3. Payroll Taxes
4. How to File
Due Date for S Corporation Tax Return
An S corporation is expected to report its income and losses of its individual shareholder's tax returns. The shareholders are responsible for covering tax on it.
This kind of corporation also is required to annually file an informational and an additional variety of IRS forms relating to other taxes it does not include in the amount that it pays to employees.
Although not required to pay federal taxes, S corporations still must file federal tax returns. The form to be filled out is Form 1120-S, and must also be given to every shareholder indicating their share of the company's profit, losses, and deductions to be made known on their own income tax return. This form must be filed no later than the 15th of the third month following the tax year of the S corporation. A six-month delay of time to file by filing IRS Form 7004 can be obtained if a corporation fails to file by March 15th.
Despite S Corporations not being required to pay federal taxes, state taxes may still be due. This depends on the state location the S corporation is situated in.
The corporation is accountable for reporting to the IRS what amount it owes in unemployment taxes on Form 940, and its submission date is Jan. 31 of each year. If the corporation covers the amount of the tax owed promptly, however, the IRS permits it to file no later than Feb. 10.
Forms 940 and 941 are utilized by S corporations to report their employment taxes and are expected every three months.
If it is past the deadline when Form 941 is filed by a corporation, and it has a remaining tax balance as well, a penalty of 5 percent could be added to the amount for each month or part of the month that it is late. This can be up to a 25 percent maximum. Comparable penalties apply to filing If Form 940 is filed after its due date similar penalties apply.
S corporations are allowed to also make payments using bank wire transfers on the same day. Another option is the S corporation having its tax professional or payroll service make payments for it. Tax professionals, payroll services, and banks may impose fees for these services.
Each activity, item, and service involves a unique tax reporting period as well as a different tax form.
For example, using Form 730 wages are reported on a monthly basis, while reported quarterly are items such as communication, fuel, air transportation, foreign insurance, coal manufacturing, ship passengers and excise taxes are disclosed quarterly on Form 720.
How to File
If it is a holiday or weekend the tax return due date falls on the date is moved to the first following work day; for example, if May 15 is on Sunday, the due date is Monday, May 16.
C Corporation Tax Returns become Effective with the 2016 tax year (filing in 2017). New deadlines exist for filing corporate tax returns on Form 1120, and this depends on the corporation's tax year.
Partnership Tax Returns begin with 2016 tax returns and will continue on in future. These returns are filed on Form 1065 by the 15th of the third month after the tax year end date. A deadline met earlier allows partners an opportunity to receive Schedule K-1's prior to when the personal tax return is due.
Though information pertaining to tax due dates is necessary for S corporations, C corporations and partnerships is briefly covered here, the guidelines for corporate tax due dates are extensive and for more information pertaining to this subject, post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.