When are S corp returns due? The due date is usually the 15th of the third month after an S corp’s year-end tax date. For instance, an S corp with a year-end calendar date of December 31 would submit Form 1120-S by March 15 of the next year. An S corp with a fiscal year at August 31 must file Form 1120-S by November 15 of that same year. If a due date lands on a weekend or holiday, the due date would be the following weekday.

S corps are businesses that have losses, income, deductions, and credits passed to shareholders. S corps don’t pay federal income taxes, but they must submit federal tax returns with Form 1120-S. Schedule K-1 is another document that needs to be submitted and needs to include such important information as:

  • Losses
  • Income
  • Deductions
  • Credits

Although S corps do not pay business income taxes, the business may still need to honor state taxes depending on where the S corp is located. In addition, S corps also need to file payroll taxes. When it comes to extensions, you may use Form 7004 to get an automatic six-month extension. This would give you additional time to file business taxes or additional returns.

Forms 940 and 941

In regards to employment taxes, S corps rely on Forms 940 and 941 to note S corp employment taxes. Form 941 records such information as:

  • Quarterly wages
  • Income tax withholding
  • Social Security taxes
  • Medicare taxes

Form 941 must be submitted in three-month intervals on the following dates:

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

Form 940 is a form that’s due by January 31 of the following year. If you paid FUTA taxes during the calendar year when the balance amounted to over $500, then the date for Form 940 would be February.

If an S corp pays wages to workers, the business must withhold federal incomes taxes, such as Social Security and Medicare taxes, from all paychecks. This would require the business to file Form 941 every quarter to note aggregate amounts. In addition, the retention of employees may force S corps to file a Federal Unemployment Tax Return annually via Form 940.

If the business dispenses wages amounting to $1,500 or greater during a calendar quarter or has a minimum of one employee working part of the day in 20 or more different weeks, the company should submit Form 940.

Excise Taxes

The IRS requires excise taxes on Form 720. Excise taxes consist of the following:

  • Fuel
  • Activities
  • Services

Services and activities have different tax structures and various tax-reporting periods. For instance, monthly wages are noted on Form 730, but other taxes, such as communication or environmental taxes, would be recorded in quarterly installments on Form 720. The IRS wants S corp federal tax payments to be paid through the Electronic Federal Tax Payment System.

Note: S corps should issue payments using wire transfer from a banking institution.

Also, the S corps can have tax professionals issue payments on the organization’s behalf, or hire payroll services. With that, you should know that tax professionals or payroll services may charge fees for such services.

Late Returns

The IRS notes that you file returns as quickly as possible if you have missed a deadline or owe a tax balance. You may end up with a financial penalty, but only in the form of interest added to the balance. As long as you pay the full balance and submit the return as soon as possible, you should not come across an issue.

If you owe money and cannot send checks to the IRS through snail mail, you can go to the IRS website and pay online using the payment system directly. You may also want to consider submitting your return online if it is late instead of mailing it. Most taxpayers can do so online at the IRS website free of charge. The IRS will accept e-file returns until October 15.

If you cannot pay the tax balance, file the return regardless, and ask for an installment arrangement. The IRS allows taxpayers to pay over various intervals, so long as you make official payment arrangements.

When are S corp returns due? To find out more, post your legal need to our UpCounsel marketplace. UpCounsel’s lawyers will help you adhere to tax filing deadlines and will answer additional questions you have regarding an S corp. In addition, they can assess whether an S corp is a right fit for your business, or if another entity would be more appropriate for your business goals.