Every year, business owners face the dreaded task of filing business tax returns. This includes filing federal, state, and local tax returns. Evading this responsibility is not an option. The key to successfully managing this daunting task is to begin early and thoroughly prepare.
When Are Business Tax Returns Due for 2023?
It is important to be mindful of the due date for submitting your income tax returns. Failure to adhere to the deadline could result in penalties for late filing, which unfortunately cannot be deducted from your taxes. Provided below are the federal income tax return deadlines applicable for the tax year 2023.
For Business Entities
In order to meet their tax obligations, partnerships, S corporations, and calendar-year C corporations need to file their income tax returns within specific deadlines. For partnerships and S corporations reporting on a calendar year basis, the deadline for filing their 2023 income tax returns is March 15, 2024.
When it comes to tax filing, limited liability companies (LLCs) with multiple members typically choose to file partnership returns. However, LLCs that have opted to be taxed as corporations have a different filing requirement. On the other hand, for one-member LLCs, their business tax return is filed together with the owner’s individual tax return.
For Business Owners
In order for business owners to fulfill their obligations, they must submit their personal income tax returns for the tax year 2023 by April 15, 2024.
When it comes to filing business tax returns, it’s important to understand your state’s specific requirements. These requirements can vary from state to state, so it’s crucial to be aware of them in order to avoid any potential issues. In fact, some states have filing deadlines that coincide with the deadlines for federal income tax returns.
When it comes to businesses conducting online transactions, it is crucial to pay close attention to the filing requirements. Certain states perceive this as a significant link (“nexus”) to them, consequently necessitating state tax return submission.
If a federal disaster area affects your business or personal income tax return, you might be eligible for an extension on the federal filing deadline. Disaster victims are automatically granted a 60-day filing extension, but the IRS may extend this period for up to one year.
In the case of the devastating Hawaii wildfires that ignited on August 8, 2023, individuals who were impacted and had previously been granted an extension for their 2022 income tax returns were given an extended deadline, until February 15, 2024, to submit their filings. Additional details regarding the filing extensions available for those affected by natural disasters can be found on the official IRS website.
File a Tax Extension for Business Tax Filing
In the event that the deadline for filing your business tax return cannot be met due to unforeseen circumstances, there is a convenient solution available to you. By simply making a request, a six-month extension can be granted automatically without the need for any explanation.
When businesses and individuals need more time to file their tax returns, they rely on specific IRS forms. For businesses, their go-to form is the IRS Tax Form 7004, also known as the Application for Automatic Extension of time to file certain business income tax returns. IRS Form 4868 is commonly utilized by various individuals, such as sole proprietors, self-employed individuals, and one-member LLCs.
When it comes to filing tax returns, many people mistakenly believe that an extension grants them additional time to make their payments. However, it’s important to note that this is not the case. In order to avoid facing late-payment penalties, it is wise to pay the amount you expect to owe as soon as possible.
How To File Business Tax
In the government’s 2022 fiscal year ending on September 30, 2022, a significant majority of business tax returns were submitted electronically as E-File.
There are three excellent reasons for this.
Given the current shortage of IRS personnel and the persistent backlog of paper returns, e-filing remains the most efficient method for processing tax returns promptly.
If business owners choose to report their portion of business income on their individual tax returns, they can optimize the speed of receiving their tax refund by E-File. Moreover, opting for direct deposit can further expedite the process.
In order to promote efficiency and accuracy, tax return preparers who submit over ten information tax returns during the 2024 tax filing season are required to file their returns, with a few exceptions granted electronically.