After that start of the new year, many people start preparing for their upcoming tax filing. While the focus is often in individual taxes, businesses have obligations, too. Also, there are strict deadlines they need to make sure they meet. Otherwise, there are potentially stiff penalties. Here’s what you should know about the business tax deadline for 2023.
What Is a Business Tax Deadline?
The business tax deadline is the date at which companies need to file their taxes and pay any remaining amounts owed to avoid specific penalties. Failing to file by the deadline comes with fees, so missing the cutoff comes with a near-automatic consequence. Plus, additional costs can be added to what’s owed if you don’t submit payments by the deadline to cover your tax obligations.
When Is the Business Tax Deadline?
The business tax deadline varies depending on the type of company you run. Partnerships, S-Corporations, and multi-member LLCs need to file no later than March 15, 2023, if you use a calendar year instead of a fiscal year. If you use a fiscal year instead of a calendar year, the filing deadline is the 15th day of the third month after that tax year closes. For instance, if your fiscal year runs from April 1 through March 31, then you’d have to file your business tax return by June 15, 2023.
Typically, the business tax deadline for sole proprietors and C-Corporations is April 15. However, it’s shifted to April 18 in 2023. The reason is that April 15 is on a Saturday in 2023, and the following Monday – April 17 – is Emancipation Day in Washington, DC. As a result, the filing deadline was moved to April 18, 2023.
Companies may also have other tax deadlines they need to account for during the year. The most common ones are the estimated tax payment due dates, which are payments based on the previous quarter’s earnings.
C-Corporations and Sole Proprietor Deadlines
Usually, C-Corporations and sole proprietors need to submit those payments on specific dates each year. For 2023, the quarterly payment deadlines for companies using a traditional calendar year are as follows:
- For Income from January 1 to March 31, 2023 – Quarterly Payment Is Due April 18, 2023
- For Income from April 1 to May 31, 2023 – Quarterly Payment Is Due June 15, 2023
- For Income from June 1 to August 31, 2023 – Quarterly Payment Is Due September 15, 2023
- For Income from September 1 to December 31, 2023 – Quarterly Payment Is Due January 16, 2024
If your company uses a fiscal year, the quarterly payments fall on the 15th day of the fourth, sixth, ninth, and twelfth months of your company’s year.
What Happens When You Miss the Business Tax Deadline
Missing the filing deadline does come with potential penalties if you owe money to the IRS. In that case, you need to file as soon as possible since the account is delinquent. When there’s a delinquency, the IRS can charge failure to file fees, failure to pay penalties, and interest based on the balance due. The longer you wait to file and cover the funds owed, the higher those penalties can get.
In cases where you can’t pay everything owed, filing sooner rather than later still works in your favor. You can avoid or minimize failure to file penalties. Plus, you can set up a payment plan to address the amount owed and prevent any further actions as long as you make the payments on time.
If you miss the deadline and you’re owed a refund, there typically aren’t any financial penalties. However, that doesn’t mean you should miss the filing date, or if you already missed it, that you shouldn’t file as soon as possible.
By getting your return submitted on time or quickly, you can get your refund in a timely manner and avoid forfeiting your refund by waiting too long. Plus, you’ll avoid any headaches resulting from having to take care of your responsibilities at a later time.
If you’re concerned about filing by the deadline that hasn’t yet passed due to circumstances out of your control, you do have the option of requesting an extension. Typically, these give you up to six months more to file. However, if you owe taxes, you’ll want to submit an estimated payment as soon as possible to avoid fees.
What You Need to Do to Meet the Business Tax Deadline
Generally, meeting the business tax deadline means filing your return and submitting any owed taxes by the deadline. For quarterly payments, those amounts also need to be submitted by the deadlines above, though you don’t have to file a return until it’s specific due date.
Precisely how you need to file varies depending on the type of business. Sole proprietors must file a Schedule C, which is typically attached to their personal income tax return. LLCs with a single owner also use Schedule C, while multi-member LLCs use Form 1065 or Form 1120, depending on whether they treat it like a corporation. C-Corporations also use Form 1120, while S-Corporations must submit Form 1120-S.
Once you know which form is required, you simply need to complete it. Usually, you’ll need supporting documents to ensure you enter the correct information, such as anything that tracks your profits, losses, and expenses. Then, you can submit it as required.
Complexity of Filing A Business Tax Return
If you’re concerned about the complexity of filing a business tax return, you can always turn to a tax professional. They can help you identify the supporting documents you’ll need to ensure the proper numbers are entered, as well as help you determine your eligibility for various deductions.
There is also tax software that specifically targets businesses. These can help you identify the correct forms and correctly record the data, ensuring the end result is accurate. Then, you can submit the business tax return online, speeding up the process when compared to mailing it to the IRS.
Do you have any tips that can help someone prepare for the business tax deadline? Have you ever missed the business tax deadline and want to tell others about your experience? Share your thoughts in the comments below.
Read More:
- Tips for Preparing and Filing Your Small Business Taxes Correctly
- Effective Ways to Save Money on Business Taxes
- Should You Be Paying to File Your Taxes?
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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