Hey guys, Bette Hochberger, CPA, CGMA here! The September 15th tax deadline is approaching fast, and if you filed for an extension on your S-Corporation (1120S) or Partnership (1065) tax returns, now is the time to get everything in order. Alongside these extension returns, quarterly estimated tax payments are also due, making this a critical deadline for many business owners. Here’s everything you need to know to stay compliant and avoid potential penalties.
Understanding the 9/15 Deadline
September 15th is the final deadline for S-Corps and Partnerships that filed for an extension earlier in the year. If your business is structured as an S-Corp or a Partnership, you’ve had a few extra months to prepare your tax return, but there’s no more time to spare! Missing this deadline could result in penalties and interest charges.
What You Need to File
For S-Corporations (Form 1120S) and Partnerships (Form 1065), your tax return must include all necessary schedules, including K-1s for shareholders or partners. These forms report each shareholder’s or partner’s share of income, deductions, credits, and other financial details, which they’ll need for their individual tax returns.
Make sure to have the following documents and information ready:
– Income Statements: To report your business’s income and expenses.
– Balance Sheets: Showing your company’s financial position at the end of the year.
– Supporting Documents: Receipts, invoices, and other records to back up deductions and credits.
– K-1s: For each shareholder or partner.
Don’t Forget Quarterly Estimated Taxes!
In addition to the extended tax returns, September 15th is also the due date for the third quarterly estimated tax payment of the year. This applies to business owners who expect to owe $1,000 or more in taxes when their return is filed.
Here’s a quick rundown of how to handle your quarterly estimated payments:
– Estimate Your Income: Use your year-to-date income to estimate what your total income will be for the year.
– Calculate Taxes Owed: Apply the appropriate tax rate to your estimated income to determine how much you need to pay.
– Submit Payment: Make your payment via the IRS’s online system, EFTPS, or by mail. Be sure to include the payment voucher (Form 1040-ES for individuals, or Form 1120-W for corporations).
Failing to make these payments on time can result in underpayment penalties, so it’s important to get them right.
Tips for Meeting the Deadline
- Review Last Year’s Return: Use your previous year’s tax return as a guide. This can help you catch any missed deductions or credits.
- Double-Check Your Records: Make sure that all income and expenses are properly documented and categorized.
- Work with a Professional: If you’re unsure about any aspect of your return or estimated payments, consulting a CPA such as myself can help you avoid costly mistakes!
- File Electronically: E-filing your return and making payments online can save you time and ensure that everything is submitted on time.
The September 15th deadline is a significant one for business owners with S-Corps and Partnerships. Whether you’re finalizing your extended tax return or making a quarterly estimated payment, it’s important to act now to avoid penalties.
If you need help preparing your return or making your estimated payments, consider scheduling a meeting with us, we’d be happy to guide you through the process.
Staying proactive and organized is key to managing your business’s tax obligations effectively. With the right preparation, you can meet the 9/15 deadline with confidence and keep your business on solid financial ground.
As always, stay safe, and I’ll see you next time.
