When is the S-Corp federal tax due for 2021?

When is the S-Corp federal tax due for 2021?

Fillings and Extension Deadline.

The deadline for filing the tax return for S-Corporation is the 15th day of the third month following the end of the tax year, generally March 15, 2021. However, there may be a change if this date falls on a weekend or holiday. If the corporation files for an extension of the tax deadline, then the due date is September 15, 2021. An S corporation is liable to file an informational tax return each year and other tax forms required by the IRS.

S-Corporation Tax return

An S-corporation is regarded as a “pass-through” entity. This means the profit and loss from the corporation are reported on the tax returns of each shareholder who is responsible for paying the federal taxes on it.

The S-corporation is still not form-free. The IRS requires an S corporation to file an informational tax return every year along with other forms such as withholding taxes from employees.

An S-corporation files IRS Form 1120S to report all its financial activity along with Schedule K-1 for each shareholder of the corporation. Schedule K-1 reports individual shareholder’s share of the taxable income of the business to report the same on the personal tax return.

The deadline for the shareholder to file the corporate tax returns is the same as the deadline for reporting individual tax returns, generally April 15.

If an S corporation fails to file within the deadline, it can apply for an extension of the time limit by filing IRS Form 7004. For automatic extension, one can file Form 7004 within the usual date of the tax return.

Quarterly tax return filing deadlines.

S corporations paying wages to their employees need to withhold federal taxes, social security, and Medicare taxes from their paychecks. The IRS requires S corporations to file Form 941 quarterly to report the aggregate amount they withhold and remit the same to the IRS. Form 941 is due every quarter, usually by January 31, April 30, July 31, and October 31.

Unemployment tax filing deadlines:

An S corporation is required to file IRS Form 940 each year to report an annual federal unemployment tax return.

There are two occasions when it is required to file Form 940.

1. The wage payment is $1500 or more in any calendar year.

Or

1. When at least one of the employees is working one portion of a day for at least 20 separate weeks or more.

The due date for filing Form 940 is January 31 every year. However, the corporation gets an extension till February 10 if it pays the entire tax on time.

 Penalties for missing tax deadlines

If the S corporation fails to file a return within the due date or extended due date, then the IRS imposes a penalty. The minimum applicable penalty is $205 per month or part of the month the return is due. The amount is multiplied by the number of shareholders.

If the corporation files Form 941 after the deadline and has some balance unpaid, The IRS imposes a penalty of 5 percent on the pending balance for each month or partially for the month for which the tax remains late.

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