Many business owners are scrambling to effectively run their business. The last thing you want on your plate is having to recall the various tax deadlines for small businesses, not to mention the various changes. We’ve created a list of key deadlines to note to make taxes a breeze.
2021 Income Tax Filing Deadline Moved to May 17th
The IRS has moved the income tax filing deadline This date change is for individuals for the 2020 tax year and is extended from April 15, 2021 to May 17th, 2021.
Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17. (IRS)
Many self-employed individuals and businesses must submit estimated tax payments quarterly and file an income tax return annually. The filing dates vary primarily on your entity structure i.e., partnership, S corporation, or sole proprietorship. Sole proprietorships use the same tax schedule s individuals, so 2020 returns are due May 17th 2021. If you are an S corporation or partnership however the return is due on March 15, 2021.
Estimated quarterly tax payments
If you are self-employed, sole proprietor, partner, LLC member or independent contractor and pay estimated taxes, quarterly tax payments are due by the following dates:
- April 15th, 2021 for Q1
- June 15th ,2021 for Q2
- September 15th, 2021 for Q3
- December 15th, 2021 for Q4 (C corporations only)
- January 18th, 2022 for Q4
The IRS is a great resource of quarterly estimated tax payments.
Employment Taxes and Payroll Withholdings
Form 941 states that small businesses must deposit employment taxes monthly or semi-weekly. Items subject to this requirement include federal income tax, federal unemployment (FUTA) tax, and Social Security / Medicare (FICA) withholdings. Employers must also report their payroll withholdings either on an annual basis or quarterly basis using IRS form 941, 943, 944, or 945.
Form 941 deadlines:
- April 30th, 2021
- July 30th, 2021
- October 29th, 2021
- January 31st, 2022
Corporate Income Tax Returns
Tax returns for companies are due on April 1thth, 2021 for income received in 2020. By filing Form 7004 businesses my request an extension of six months. The first quarterly estimated tax payment of the year is also due on this date.
S Corporations and Partnership Income Tax Returns
For businesses classified as either an S corporation or partnership, you deadline for submitting your tax return is March 15th 2021 or the third month after the end of your organizations tax year. Partnerships must complete form 1065 which is used to generate a Schedule K-1 earnings statement for each partner. For S corporations, Form 1120S is needed to prepare the Schedule K-1.
A six-month extension can be requested by submitting Form 7004 along with a deposit equal to the amount of estimated tax owned.
2021 Tax information and resources
This guide is intended to be a resource for business owners and individuals related to tax deadlines. With the various changes as a result of COVID-19, some of the dates may change in addition to being able to qualify for various tax credits for certain expenses. The IRS Small Business and Self- Employed Tax Center is a great resource. If you are a business owner and need assistance with payroll, FICA, FUTA, and other taxes related to business ownership Fortune Business Consulting is also a great resource. Payroll processing services, tax remittance, and HR management are other areas that can assist with being prepared for all of the various tax deadlines.
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