The phrase “nothing is certain but death and taxes” is a real thing for taxpayers. When tax returns are due, you need to file them on time or be faced with penalties and interest. Not only can this hurt you financially, but it also exposes your business to IRS audits.
Thus, it is important to know when tax returns are due, so you won’t have to pay more than you have to. The prompt filing of your tax returns allows your company to remain in compliance and in good standing with the IRS.
The best way to save on taxes and prevent audits is by hiring a tax professional who will file your tax returns on time. They can also help you save on taxes since they have knowledge on the tax code and the application of deductions and credits.
The Basics of Filing Tax Returns
The IRS underwent major changes in 2018. However, the filing deadlines remain relatively consistent with previous years.
When you file your return, the amount of tax you’re required to pay (or receive) is determined.
If you have a subsisting tax refund, you will receive your refund usually within two to three weeks.
If you file a paper tax return, refunds usually take a little longer.
Last Minute Filing
You will be at a disadvantage if you choose to file your returns near the deadline. You have to keep in mind that completing the necessary forms take hours to complete.
If you are entitled to a tax return, you cannot claim it until you file your tax return. If you file late, your refund may be delayed.
Also, scrambling at the last-minute exposes you to mistakes on your tax return.
Your income determines which forms you need to file when tax returns are due. These are categorized as an individual, partnership, sole proprietorship, and corporate tax forms. The most common ones are provided below.
Filing Deadlines Of Common Tax Forms
Form 1040-ES
If you receive a W-2 form from your employer, it’s likely that your employer is already withholding taxes on your behalf.
However, self-employed taxpayers need to file estimated tax payments each year.
The IRS Form 1040-ES must be filed on or before April 15th. However, for those who pay their taxes quarterly, you may file by June 15th or on September 15th. The last deadline for installments is on January 15th of the following year.
Form 1065
This type of tax return concerns partnerships. You need to file them on or before March 15th. However, the deadline can be extended to September 15th.
Form 1041
This form is called the Estates and Trust Income Tax Return. It’s due on April 15th of every taxable year but is extendable until September 30th.
Form 1120
This is called the C-Corporation Income Tax Return. Corporations are composed of several shareholders who earn income from the venture. However, being a separate and distinct entity from its owners, it must be filed as a separate form when tax returns are due.
Corporations are required to file this by considering the corporate income tax rate, not the shareholders’ personal tax rate.
The deadline for this form falls on April 15th of every calendar year. However, the deadline can be extended until October 15th.
Form 1120-S
You must file this form by March 15th on a calendar year when tax returns are due. However, the deadline may be extended until September 15th.
Taxes are not paid at the corporate level. However, you must file annually and provide this information to the IRS.
FinCEN Form 114
This is the Foreign Bank Account Reports form. It reports the financial interest over foreign financial accounts and filed with the Treasury Department. It’s due by April 15th but extendable until October 15th when filed with Form 1040.
Form W-2
This tax return is filed by employers to their employees which includes the payment of employee compensation, taxes withheld, retirement information and more.
Form 1099
This is an information return that shows income received if you are an independent contractor. If you earn at least $600 as an independent contractor, you must file this accordingly.
The form contains interest and dividends, self-employment earnings, and government payments. Generally, the deadline for companies filing Form 1099 is every January 31st .
Form 1099-B
This type of tax return is filed by financial institutions. It concerns bonds, mutual funds, sales of stock, and the mutual funds of a brokerage account.
If you earn from investment securities, the IRS requires you to file the information on Form 1099-B. It also shows your cost basis since investment gains or losses are what determines the amount of tax liability.
Form 1099-S
This tax return refers to real estate transactions. This is where you indicate your capital gains and losses on your annual income tax return.
Property Taxes
Property taxes must be filed promptly when tax returns are due. If your mortgage properties are out of an escrow account, failure to pay the dues puts your property at risk of foreclosure. If these are not escrowed, you should save funds ahead of time just to make sure.
The penalties for late payments when tax returns are due include interest, property liens, and sometimes, foreclosure. The annual property tax bills are usually sent to you by October of each taxable year.
You may pay them in two installments. The first installment is due by November 1st while the second falls due by February 1st of each taxable year.
You may opt to pay both installments at the same time.
Filing Extensions for Your Tax Returns
Form 4868
Form 4868 is the Application for Automatic Extension of Time to File U.S. Income Tax Return. When tax returns are due, this form shall be filed before April 15th so you can opt for a later deadline.
This applies if you are a U.S. citizen living abroad. If you file this on time, you are eligible for an automatic six-month extension as well.
Form 7004
This is also a form that extends the deadline when tax returns are due. It only applies to business income tax returns, and other necessary information regarding income.
If you engage in partnerships, corporations, or trusts, you should file this form when tax returns are due.
What To File When You Incur A Penalty
Form 2210
Form 2210 is the Underpayment of Estimated Tax by Individuals, Estates, and Trusts. It is attached to IRS Form 1040s and IRS Form 1041.
This indicates whether you have a subsisting penalty with the IRS or if you have an overdue balance from the previous taxable period.
First, you must indicate the amount of your annual payment. This tells the IRS how many penalties you incurred when tax returns are due.
Next, you need to indicate a particular reason for filing Form 2210.
Are you requesting a waiver of your penalty? Do you wish to reduce your liability by using the annualized income installment method? Do you have objections or corrections regarding your penalty?
The third step is also indicating whether you want to use the short method or the regular one in paying for the penalties.
The short method is used when you have no estimated tax payments or when you only paid withholding federal income tax.
You use the regular method if you made estimated tax payments but settled them late. This also applies when you are an employee that has not been paid his wages and whose income is subject to withholding income tax.
Finally, the next step proves why a tax professional is exactly what you need when tax returns are due. This is the part where you will be asked to compute the underpayment you incurred.
Accountants fill out this form without effort. They are experts in knowing how much your liability is by examining your books. They even file other forms so you do not worry about missing out on deadlines when tax returns are due.
The Benefits of Your Filing Tax Returns On Time
Filing your tax returns ahead of time lets you save more money.
Retirement Plan Contributions
The IRS raised the limit to $19,000 for 401(k), 403(b), and most 457 retirement plan contributions.
The IRA contributions also increased up to $5,500 to $6,000 this year.
Tax Planning Services
You can prevent incurring tax penalties by hiring someone to promptly file with the IRS when tax returns are due.
Accountants are trained to complete financial statements and tax filing initiatives before they are granted their CPA licenses.
Imposing efficient tax planning generates tax-saving solutions. We mitigate your risks of incurring tax penalties and file returns on time so you can avail of tax exclusions and exemptions.
Coherence
We implement a tax plan for all your tax liabilities to function in sync. We file these forms for you and ensure that the details entered are precise and error-free. Our experienced and licensed accountants are the key to helping you save on your tax burdens.
Keep It Organized
Federal income tax return deadlines are shifty. With the help of our experts, you get to file your forms on time and take advantage of financial benefits.
We make sure that you are filing the correct forms and submit them in the most efficient manner. In fact, electronic submissions are possible nowadays and make the process faster.
Our accountants have been submitting forms for satisfied clients for years. You need not worry about your tax burdens ever again. We even provide you with a digital run-through of what we’re filing so you know where you’re standing at all times.
Privacy Is Key
We let you manage your taxability from a secured platform. We observe the utmost regard for privacy. We also make sure that you get to make your own adjustments are well. Your records are definitely in good hands.
Efficiency In Filing Methods
One of the benefits if you avail of our tax planning services is not having to file your forms repeatedly. If you run a large business, this would definitely be such a strain!
Control Your Liabilities
With our help, you will have better control of your tax liabilities. We value preciseness and are trained to dodge technical errors. Instead of filing the forms on your own and expose yourself to errors on the numbers, we’ll take care of those for you! Convenient, isn’t it?
Let our experienced LYFE Accounting tax planners and accountants deal with all these technicalities. With our services, you will never be late in filing the forms when tax returns are due.