1. Form 941
2. Form 940
3. Penalty Structure
4. Due Dates

An S corp extension due date useful if you need additional time to pay a tax balance. An S corp must file an informational income tax every year, including other applicable IRS documents. One feature that S corps offer is pass-through taxation, where losses and profits flow from the business to shareholders, where they file such information on their personal tax returns.

An S corp must file an annual return by March 15. Your business would also need to report all financials on Form 1120S and include a Schedule K-1 for all shareholders in the business. Schedule K-1s record the taxable income of shareholders so they can record it on their tax returns.

A business that has already dissolved should file by the 15th of the third month after the date in which the company had been dissolved. If the business cannot pay by March 15, you may get a six-month extension request through the use of Form 7004.

Shareholders who pay taxes on corporate income must adhere to the same deadlines as individual taxpayers, which is April 15. A September 15 due date only goes into effect if you request a six-month extension. If the due lands on a weekend or holiday, you may file the following day.

Moreover, if the corporate election was eliminated during a tax year, and the corporation turns back into a C corp, you must file Form 1120S for an S corp’s short year by the deadline (including any extensions) of a C corp’s return for the short year. 

Form 941

If an S corp issues wages to its employees, the business must withhold federal incomes taxes, including Social Security and Medicare taxes from all paychecks. Such a mandate requires Form 941 every quarter and must be reported to the IRS. Form 941 is due four times each year:

  • January 31
  • April 30
  • July 31
  • October 31

Form 940

The addition of employees could require an S corp to submit a Federal Unemployment Tax return annually using Form 940. For instance, a business that pays wages amounting to $1,500 or greater during a calendar quarter, or has a minimum of one employee working part of the day, or 20 or more weeks, must file Form 940.

The goal of such a form is to detail the wage amount that an S corp would owe in unemployment taxes to the IRS. Form 940 must be submitted by January 31 annually. With that, a business that pays a tax balance on time does not have to file until February 10.

Penalty Structure

When an S corp fails to submit Form 1120S by the deadline, or by extension due dates, the IRS will impose certain penalties. For instance, the IRS will impose a $195 penalty for every month that the return is late, multiplied by the shareholder number. In addition, an S corp that fails to file Form 941 after the deadline will contend with a five-percent penalty on the balance for every month a tax bill goes on unpaid, but the maximum penalty amounts to 25 percent. The same penalties also apply to Form 940.

Due Dates

Americans panic every spring when tax season arrives, and they may not know which forms that they need to file. You should know that the due date to file a federal income tax may shift now and then. The official date is April 15, but only if there is no holiday or weekend. It’s also worth noting that certain industries must adhere to different forms of taxation:

  • Fishermen and Farmers: Must file a 2017 income tax return using Form 1040 and pay by March 1
  • Employees Working for Tips: Employees who receive $20 or greater in tips during February must report such information to employers. The due date is March 10.
  • S Corps: Must pay calendar year tax return using Form 1120S. The deadline is March 15
  • S Corp Election: You must file Form 2553 gain S corp status. The due date is March 15

If you file Form 2553 after the deadline for 2017, for instance, your S corp status would go into effect the following year in 2018. Extended due dates regarding S corps would be September 17, 2018.

If you need to learn more about an S corp extension due date, submit your legal inquiry to our UpCounsel marketplace. UpCounsel’s attorneys will help you file all tax documents and registration papers by the deadline, based on your current business goals. In addition, they will guide you through tax season and will help you maximize certain tax advantages so may use additional money to invest into your business.