Although tax deadlines can’t be changed, startups can stay on top of important filing dates. January 31st is usually when independent contractor forms and wage statements are due with February 28 being the due date for 1099 paper filings. Then there is the S corporation and partnership extensions due on March 15. It’s best to file an extension to avoid penalties whether on a per partner or per month basis.
C corporation and S corporation elections have to be filled within 75 days of the start of the tax year. This helps foreign-owned LLC members to be taxed as a C corporation while allowing U.S. C corporation shareholders to save taxes as an S corporation. March 31st is an important eFiling deadline for the majority of payout information returns.
This year the tax day extension date is April 18th. Corporations have to remember to pay estimated taxes on their first year of making a profit. For companies with more than 10% foreign ownership, the BE-12 form has to be filled out to avoid penalties that can range from $2,500 to $10,000. Extended returns for C corporations, single-owner LLC, and individuals on a 6-month extension is October 16.
The Federal tax deadline is December 31st or 3.5 months after the end of the month where the tax year ends if not using the year end date. An exception is tax years that end in June and have a September 15th due date. Other common fiscal years include an end date of January 31 for tech companies that want to emulate Salesforce. It’s important for everyone to file their taxes on time in order to avoid expensive penalties.