As the IRS keeps pushing the income tax filing deadline in the U.S., some businesses struggle to keep up with the updates. Of course, this increases the risk of missing the tax filing due date to a great extent.
But, failing to file federal income tax returns is a luxury that small businesses can’t afford.
Why is that?
Failing to pay taxes on time attracts back taxes that accrue penalty plus interest. This can catapult your tax debt through the ceiling, making it more difficult to repay what you owe. Next thing you know – the IRS is knocking on your door, ready to seize your business assets.
You can, of course, stop this snowball effect by simply keeping a tab on the upcoming tax deadlines that apply to your business.
To help you out, here is a list of upcoming federal tax deadlines that should be on your priority list.
Employment Taxes & Payroll Withholdings
This tax applies to Social Security or Medicare (FICA) withholding and federal income tax, federal unemployment, or FUTA tax. Small businesses are required to deposit employment tax either monthly or semi-weekly as per the reported liability on Form 941, Employer’s Quarterly Federal Tax Return. As an employer, you must also report payroll withholdings annually or quarterly on IRS Form 941, 943, 944, or 945.
Tax deadline: For Form 941, the key deadlines are – 30th April 2021, 31st July 2021, 31st October 2021, and 31st January 2022. However, the other forms have to be filed by 31st January or the last day of the first month of a calendar year.
Income Tax Returns for Partnerships and S Corporation
Is your business classified as an S corporation or a partnership?
If yes, then note the following dates down!
Usually, this tax has to be paid by 15th March, but you can apply for a 6-month extension by filing Forms 7004 and paying the estimated tax dues.
Tax deadline: The final deadline after an extension to file the tax returns and applicable interest and penalties would be 15th September 2021.
Corporate Tax Returns
The original deadline to pay this federal tax was 15th April 2021. However, just like the previous tax, a 6-month extension was allowed to those who filed Form 7004 and paid the estimated tax due.
Tax deadline: If you had opted for an extension, know that you have until 15th October. 2021 to file your income tax returns. Remember, you will have to file the taxes using Form 1120, and you must pay the remaining taxes, applicable interest, and penalties by this date without fail.
Estimated Income Tax 2021
As a business owner, you should calculate your quarterly estimated income liability beforehand and use worksheet Form 1120-W.
Tax deadline: As far as this tax due date is concerned, quarterly estimated income tax for corporations is paid on the 15th day of every quarter. That is, these taxes have to be paid on 15th April 2021, 15th June 2021, 15th September 2021, and 15th December 2021.
Federal Excise Tax
While these taxes apply to various products and industries, the filing requirements vary among businesses.
For example, manufacturers, retailers, communication companies, and travel services need to file Form 720 every quarter. On the other hand, companies accepting wagers have to file Occupational Tax and Registration Return for Wagering using Form 11-C. They also file Form 730 every month.
Businesses that operate heavy vehicles designed for highways have to file Form 2290.
Tax deadline: The Federal excise taxes filing dates are given below –
- Form 720 due date – 30th April, 30th July, 29th October, and 31st January
- Form 11-C due date – Before accepting bets
- Form 790 due date – Every subsequent month
- Form 2290 due date – Last day of the heavy vehicle’s 1st month of service. Subsequent filings must be completed by 31st August 2021.
Note, the state income tax filing deadline tends to vary. So, to ensure that you don’t miss the deadline, make sure to check with your state tax collection authority beforehand.
Keeping a tab on tax deadlines and filings is tedious, especially for a busy entrepreneur like you. Fortunately, you can leave this dull task to a PEO and focus on your business.
Contact us now to learn more.
Reference links
https://www.simplybusiness.com/simply-u/articles/2020/11/small-business-tax-deadlines/
https://www.hiscox.com/blog/2021-federal-tax-deadlines-for-your-small-business
https://www.thebalance.com/income-tax-deadlines-3192862
https://www.taxback.com/blog/us-key-tax-dates/
https://www.irs.gov/businesses/small-businesses-self-employed/employment-tax-due-dates
https://greaterphoenix.score.org/blog/what-happens-when-you-dont-pay-your-business-taxes
https://www.thebalancesmb.com/late-payment-of-business-taxes-397688
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