Extended Due Dates

For those of you that haven’t yet filed your 2013 tax return(s), I thought I’d let you know that the extended due dates are fast approaching. Assuming that you filed an extension request (Form 4868 for individual or 7004 for business) by the original due date (back in March or April), you have until September 15th to file your business return and until October 15th for personal.

Business returns include partnerships (1065), S (1120S) or C (1120) corporations, and trusts (1041). Note that sole proprietors (or single member LLCs taxed as sole proprietorships) report their business activity on Schedule C, which gets attached to your 1040, and therefore isn’t due until October.

I should mention that the penalty for late filing of a personal return (and late payment of the tax) is based on the amount of tax that is owed. So if you’re getting a refund, there may be no penalty at all. But since most partnerships and S-Corps don’t pay tax themselves (the income is passed through and taxed at the individual level), the penalty for these is $195 per partner/shareholder per month. As you can imagine, this adds up fast.

Do you have the support you need to manage your small business bookkeeping? Contact us to schedule an appointment to speak with a local small business advisor.