Are you ready to file your business taxes? Have you already handled it? If not, it’s time to jump in and get it done. Partnerships and S-corporations are required to get their taxes in by March 15. This doesn’t mean you need to make a tax payment at this time by filing. However, you could end up with a huge penalty if you don’t have things in on time.

What To Know About Penalties

If you’re debating whether to file now or wait, it’s important to understand the penalties if you do not. This is calculated based on every month that the return is late multiplied by each partner or shareholder.

Let’s look at an example to explain this a bit better. Maybe you wait until April 16 to file your business tax return. You and your spouse jointly own an S-corporation. Once penalties come around, they could be as much as $880.

Make Sure To File On Time

There are several things you can do to avoid hefty penalties. The first is simply to file on time. Do not wait. If you are a shareholder or partner of a partnership or S-corporation, make sure the company tax return makes it in before or on March 15.

This has an impact on penalties but goes beyond that. The later you file, the shorter amount of time you have to focus on your individual tax return. After all, you’ll need to pay any due taxes by the filing deadline of April 18.

Look Into Extensions

Perhaps there’s no way you can file on time. If that’s the case, make sure to file an extension on or before March 15. This will give you an additional six months to file. Keep in mind that you’ll pay taxes for a flow-through business on Form 1040 tax returns before or on the April 18 filing deadline.

Realize Personal Returns Could Be Delayed

You should not file Form 1040 tax returns until you have K-1s from all partnership and S-corp businesses. If the business files an extension, you may need to do the same for your personal return. However, an extension doesn’t mean you can wait to pay taxes. You may need to estimate the payments to be made on or before April 18.

Challenge Penalties If Needed

If you do get a penalty for filing late, it’s always possible to fight it. This is especially accurate if your personal taxes were filed and paid on time. Remind the IRS that you are still providing them with all the taxes they are owed.

Final Thoughts

At Veris CPA, we offer accounting services when you need them. We listen to your needs and use our years of experience to find the right solution for you. If you need assistance with filing your business taxes this year, reach out to us and we’ll explain what we can do to help you.