Due dates for corporations and partnerships vary slightly from the traditional April 15 due date that private citizens must meet when paying taxes. If your business is an S-corporation, you must file by the 15th day of the third month after your tax year ends. If it is a C-corporation, you must file by the 15th day of the fourth month. Partnerships must pay by the 15th day of the third month as well.
If you know you cannot file on time, you can file Form 7004 to ask for an extension. If you do not file taxes or the extension, you may face penalties. It is always a wise idea to file your taxes on time in order to keep yourself free from all the troubles later on. There are many people who just miss out to file their taxes just because of carelessness but this is not at all a good habit. Filing taxes on time is yur duty and you should go for it without any doubt and delay.
Penalties for an S-Corporation
Your penalties will depend on whether your business has always been an S-corporation or was once a C-corporation. S-corporations usually do not owe taxes themselves, but those that were once C-corporations may owe corporate-level taxes in some situations. Penalties may include paying interest on owed taxes or facing penalty charges of up to 25 percent. Specific penalties depend on your company.
Penalties for a Partnership
Partnerships also do not usually owe taxes themselves. Like S-corporations, they are considered an extension of the partners. Partnerships are required to provide a Schedule K-1 to every partner. Penalties for not filing a partnership return include fees of up to $89 per partner per month that the return is late.
What To Do if You Are Late
If you are unable to file your return on time and do not file an extension, you should file right away. Even if you cannot pay everything you owe, pay as much as you can. Doing so may save you from some interest and penalties. In rare cases, the IRS may also provide a further extension or waive penalties if you prove a good reason for missing the deadline.
Regardless of when you file your return, it helps to know your Federal tax ID number. IRS EIN Tax ID Filing Service provides an IRS EIN lookup for you to find your number if necessary. To learn more about their EIN lookup and other services, contact them at IRS-EIN-Tax-ID today.