S Corp Due Date: Everything You Need to Know
The S corp due date for a yearly tax return is March 15 and they have a duty to file an information-based tax return each year, including other IRS documents.3 min read
2. Withholding Taxes
3. Penalty Levels
4. Due Date Extensions
The S corp due date for a yearly tax return is March 15. An S corp has a duty to file an information-based tax return each year, including other IRS documents. S corps offer what’s called a pass-through tax method, where losses and profits flow from the business to a shareholder’s personal tax return.
Additionally, the S corp needs to use the calendar year ending date (Dec. 31st), unless the business establishes a reason why a different date is necessary. The due dates for filing the tax return are the same as other corporations.
If the due date lands on a weekend or holiday, the business may file on the following day. If an S corp election faced termination during a tax year and reverses into a C corp, you must file Form 1120S for the S corp’s short year to meet the due date (extensions included) of the C corp’s short year tax return.
Moreover, the corporation needs to report financial affairs on Form 1120S and attach a Schedule K-1 for every shareholder. A schedule K-1 notes a shareholder’s portion of the business in regards to taxable income, so they may apply such information on their personal tax returns.
You need file Form 7004 to receive the following:
- Automatic extension to file income tax
- Previous returns
- Six-month extension request
You would file Form 7004 by the return’s ordinary due date. All shareholders that pay corporate income taxes must adhere to the same IRS deadlines as individual taxpayers, which is April 15.
If an S corp pays a wage to an employer, for instance, that business must withhold federal tax in the form of Medicare and Social Security taxes. In such a case, the business needs to file Form 941 to the IRS every quarter to note the aggregate amount that the business withholds.
Further, the use of employees may require an S corp to file a yearly Federal Unemployment Tax return on 941. For instance, a corporation that pays wages amounting to $1,500 or greater during any calendar year quarter, or retains a minimum of one employee working a portion of the day or 20 or more separate weeks, that business must file 940.
The aim of Form 940 is to record the wage amount coming from an S corp so the IRS can determine how much unemployment taxes a business may owe. Form 940’s due date is January 31 annually. If the business pays all of the taxes on time, the IRS will allow filing until February 10.
When S corps do not file Form 1120S by the deadline, including the extended due date, the IRS will levy a penalty of $195 for every month, or a partial month, that the return ends up late, multiplied by the shareholder number. If an S corp files Form 941 after the due date, and still owes taxes, a five-percent penalty will be added to the balance for every month, or part of the month, that the balance is late, and the maximum penalty adds up to 25 percent.
Your corporate tax return due date is determine on the type of entity, regardless of whether you plan to file for an extension, or if there are holidays or weekend days. The tax return deadline for business and individuals usually lands on the 15th day of April of a company’s fiscal year.
In regards to calendar year companies, the deadline will land on or around Emancipation Day, which may affect the deadline. Emancipation is April 16, but the government acknowledges it on Friday if that day lands on a Saturday and Monday, if the holiday is on Sunday.
Due Date Extensions
The individual tax and corporate tax return date for 2018 would be April 17. The extended deadline for individual and corporate taxes would be October 15, 2018. Exempt organizations include the following:
Such entities must file taxes on May 15 on the organization’s fiscal year. If an exempt entity petitions for an extension, they would obtain three months instead to six months, as would be the case with other entities. This means that the 2018 extended deadline on exempted organizations would be August 15 2018.
To learn more about an S corp due date, submit your legal inquiry to our UpCounsel marketplace. UpCounsel’s lawyers will help you meet all S corp deadlines and show you the appropriate forms you need to file for your business. In addition, they will support you in the event of IRS troubles, or if you have questions regarding your tax liabilities.