6 Things to Know as the Business Extension Deadline Approaches
If you filed an extension for your business tax return back in March, then your new deadline is quickly approaching. For most business owners and partners, the business extension deadline is September 16th, and if you haven’t filed your full return yet, time is running short. Here’s what you need to know as we close in on the business extension deadline.
There Are a Few Exceptions
First, as we mentioned above, September 16th is the extension deadline for most business owners and partners. However, one large exception to this is C corporations. If your business is a C corp, and your corporation operates on a calendar-year basis, then your extended deadline will be October 15th. If your C corp operates on a fiscal year rather than a calendar year, your deadline is the 15th day of the fourth month after your fiscal year has ended.
However, for S corporations and partnerships, the extended deadline is September 16th. If you’re ever unsure about which business extension deadline applies to your company, please feel free to reach out to us and speak to one of our accountants.
There’s No Additional Extension
It’s important that every business owner understand that there is no option to further extend your tax filing. So, if you haven’t filed your full return yet, and you don’t feel as if you’re ready to file now, it’s vital that you get your documents and tax forms together and ready before the 16th. Once this deadline has passed, your tax return is considered late, and you’ll begin to accrue late-filing fees.
Returns Can Be Amended If Necessary
If you’re stressing over getting your business return filed on time, and you’re worried that you won’t have all of your documentation ready, try to remember that absolute perfection isn’t necessary. Don’t miss the deadline because you’re worrying about getting every last penny in just the right place.
Returns can be amended in the future, if necessary. Of course, we strongly encourage you to be as accurate as possible in every part of your business return. However, the option to amend is always available if something gets overlooked. Hopefully, this knowledge can help to ease some of your stress over filing your business return, and give you the options to make corrections after filing, should you happen to miss something in your initial return.
You May Still Get Late Payment Fees
When you filed for an extension of your business return, you should have submitted an estimated tax payment to the IRS. This is because an extension only extends your deadline for filing the return—not for paying your taxes. However, even if you did make that payment, it is still possible for you to get some late payment fees, if you owe more than what you initially paid.
If, for whatever reason, your estimated payment was significantly lower than what you actually end up owing to the IRS, you could have that extra fine tacked onto your tax bill. While this is unfortunate, it is still going to be far less that what you would have paid in fees, if you hadn’t made that good-faith payment at all.
And, of course, if you overpaid when making that estimated payment, the IRS will issue you a return for whatever amount you overpaid by.
It’s Also an Estimated Tax Payment Due Date
In addition to being the business extension deadline, September 16th is also the deadline for third-quarter estimated tax payments. Many business owners and partners must make quarterly estimated tax payments, since the income they receive from their businesses is not taxed during the year.
So, if you’re someone who makes quarterly payments to the IRS, make sure that the stress of the extension deadline doesn’t cause you to overlook this payment. Better yet, get one of them done right away, so that you can focus your attention on the other.
A CPA Can Get It Done Faster
Finally, if you have not yet enlisted the aid of a CPA or other professional tax preparer, please be aware that such a professional can get your business return filed much more quickly than you can manage on your own. We have handled thousands of business returns, and can help you to assemble and organize the necessary documents and information so that your return is filed on time.
If you need assistance filing your business return before the approaching extension deadline, please contact us today to set up an appointment with one of our CPAs.
Camputaro and Associates
Certified Public Accounting Firm
136 N. Orchard Street, Suite 8
Ormond Beach, FL 32174