The tax-filing deadlines for small business owners have traditionally remained the same for many years. More specifically, March 15 has been a longstanding date on the calendar for entrepreneurs who operate formal business entities across all fields.
However, if you haven’t heard, the IRS has changed a few key due dates for certain business income tax returns for 2017 and into the future. Below is an overview of the filing date changes you should know about to ensure you get your return in on time.
Wednesday, March 15, 2017
General business partnership returns – Form 1065 – are now due by this date. In the past, these IRS tax forms did not have to be filed until April 15 or the next non-holiday business day. This means that partnership owners must submit these returns one month earlier, so it’s critical to prepare sooner for this new deadline. Keep in mind that Form 1065 is considered an information return. Therefore, partnership income must also be reported on the personal tax returns – Form 1040 – of the partners involved in the business.
In addition, S corporation tax returns – Form 1120S – are due by this deadline. This due date remains unchanged from previous tax years. Form 1120S is also an information return, so again, the business income must be reported on the personal returns of each shareholder in the S corp as well.
Tuesday, April 18, 2017
Because Emancipation Day is observed on April 17th in Washington, D.C. in 2017, Tax Day has been pushed to April 18th. This gives taxpayers a few extra days to prepare for the important deadline.
A big change in 2017 is that C corporation tax returns – Form 1120 – are now due by this date. In the past, Form 1120 was due on March 15. This means owners of C corps now enjoy a full additional month to gather up their relevant business financial statements, receipts, and other documents to properly file Form 1120.
It’s also worth noting that April 18 is the deadline to submit Form 1040, the traditional personal income tax return. It is an estimated tax-filing deadline for the first quarter of 2017 as well for small business owners and others who earn 1099 income. Estimated tax payments are made using Form 1040-ES.
Of course, if you need a 6-month extension of time to file your personal income tax return, you must request this extension by this date. Never rush to file your tax returns because you could misreport certain information or fail to take advantage of key tax breaks. That’s why obtaining an extension may be necessary to avoid mistakes, late-filing penalties, or even a tax audit.