S Corp Taxes Due Date: Everything You Need to Know
S corp taxes due date is part of the updated tax due dates signed into law by President Obama that became effective for tax years beginning after Dec 31, 2015.3 min read
S corp taxes due date is part of the updated tax due dates signed into law by President Barack Obama that became effective for tax years beginning after December 31, 2015. The new due dates were applicable to 2016 tax returns and the 2017 filing season.
S Corporation Federal Tax Filing Dates
S corporations are responsible for filing an informational income tax return annually along with other forms required by the Internal Revenue Service (IRS). The due date for its annual tax return is usually by March 15. The date is determined by selecting the 15th day of the third month that follows the end of the tax year.
To report its financial activity, an S corporation files Form 1120S and attaches a Schedule K-1 for each of its shareholders. The Schedule K-1s provide information on each shareholder's share of the taxable income they'll be reporting on personal tax returns.
For S corporations that do not file by March 15, submitting IRS Form 7004 provides an automatic six-month extension. Shareholders paying tax on corporate income will continue to file on April 15 annually in most cases.
Businesses paying wages to employees are responsible for withholding applicable taxes such as Social Security, Medicare, and federal income tax from individual paychecks.
Form 941, which is due quarterly on January 31, April 30, July 31, and October 31, is required by the IRS. The form reports the aggregate amount withheld that must be remitted to the IRS.
Form 940 may also be necessary for an S corporation to file annually. The form is used when a corporation pays $1,500 or more in wages, in a calendar quarter. It may also need to file if an employee works a portion of a day in 20 separate weeks.
Failure to file Form 1120S by its due date or by the requested extended due date has a fee imposed of $195 for each month or partial month the return remains late. The $195 is multiplied by the number of shareholders involved in the corporation.
The penalty for not filing Form 941 on time results in a 5 percent charge on the balance. This will continue for full months or partial months that the tax is late and can increase up to a maximum 25 percent. Form 940 has similar penalties.
Purpose of Changing the Due Dates
The following is an overview of why the change was made to the due dates.
- The change addresses many problems faced by taxpayers and tax professionals.
- It improves the filing process, and the accuracy of the tax and information returns is improved by allowing individuals and corporations to file current data from flowthrough returns versus relying on estimated figures.
- The due dates facilitate the flow of information between taxpayers, which includes partnerships, individuals, and corporations.
- With new dates, earlier filing by businesses and individuals is supported reducing the need for corporations to request an extension or file amended returns.
- It enables final flowthrough returns to be filed earlier.
- It simplifies tax administration for all involved including taxpayers and the government.
New Tax Return Due Dates: Effective for the 2017 Filing Season
It is possible that the due date of other forms that are tied to the forms listed below will be changed at some point to coincide with the corresponding return's new due date.
March 15 (extensions through September 15)
- U.S. Return of Partnership Income - Form 1065
- U.S. Income Tax Return for an S Corporation - Form 1120S
- Schedule K-1
April 15 (extensions through October 15, unless noted below)
- U.S. Individual Income Tax Return - Form 1040
- U.S. Income Tax Return for Estates and Trusts - Form 1041 (extensions through September 30)
- U.S. Corporation Income Tax Return - Form 1120 (extensions through September 15 until 2026)
- Report of Foreign Bank and Financial Accounts (FBAR) - FinCEN Form 114 (first-time late filer penalty waived)
May 15 (extensions through November 15)
- Return of Organization Exempt From Income Tax (series) - Form 990
- July 31 (extensions through October 15)
- Form 5500 for employee benefit plans
If you need help with S corp taxes due date, you can 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.