Attention S Corporations and Partnerships: An important tax filing deadline is approaching! Ensure you submit Forms 1120S and 1065 by September 16, 2024.

What forms are due?

If you requested an extension for the following forms, they are due by September 16 (September 15th falls on a Sunday this year, so forms are due Monday September 16th for 2024).

1120S (S Corporation Returns, Due March 15, 2024) - This tax return, including Schedule K-1, reports the income, losses, and dividends attributed to S corporation shareholders. Each shareholder receives a Schedule K-1, with allocations determined by the percentage of shares they owned throughout the tax year. If an extension is filed, the return deadline is September 16, 2024.

1065 (Partnership Returns, Due March 15, 2024) - Partnerships utilize this information return to report their financial activities, such as income, gains, losses, deductions, and credits. Unlike corporations, partnerships do not pay taxes on their income; instead, they pass on any profits or losses to the partners. Partners must then report these items on their own tax returns. Extended returns for the calendar year are due by September 16, 2024.

What are the filing requirements for C Corporations?

1120 (C-Corporation Income Tax Returns, Due April 15, 2024) - U.S. corporations report their taxes using Form 1120. The standard deadline for C-corporation returns is the 15th day of the fourth month following the end of the corporation’s fiscal year. For calendar year taxpayers who file for an extension by April 15, the extended due date is October 15, 2024. For C corporations with a fiscal year ending on June 30, the initial deadline is September 16, which is the 15th day of the third month following the end of the fiscal year.

What else is due on September 16th?

Third quarter estimated tax payments (IRS Form 1040ES) are due for individuals and trusts operating on a calendar year basis, impacting self-employed taxpayers.

Additionally, C corporations with fiscal years ending in March, June, September, or December may also have quarterly estimated payments due.

What’s at stake if you don’t file/pay?

1120 Penalties:

Failure to file: A corporation that fails to file its tax return by the deadline, including any extensions, may incur a penalty of 5% of the unpaid tax for each month or portion of a month that the return is late, with a maximum penalty of 25% of the unpaid tax.

Failure to pay: A corporation that fails to pay its taxes by the due date is generally subject to a penalty of 0.5% of the unpaid tax for each month or part of a month the tax remains unpaid, up to a maximum of 25% of the unpaid amount.

1065 penalties:

Fixed Monthly Penalty: If the return is late, a penalty of $220 per month is imposed for each month or part of a month, up to a maximum of 12 months. Even missing the deadline by a single day triggers the full monthly penalty.

Penalty Multiplied by Number of Partners: The monthly penalty is multiplied by the number of partners in the partnership during any part of the tax year. For instance, a late filing with 5 partners could result in a penalty of $1,100 per month.

Don't forget to file your forms promptly to avoid penalties and late fees.