What S Corps Need to Know About March 15th Filing Deadlines

As a small business owner in Rochester, NY, or Greece, NY, if you’ve elected S Corporation (S Corp) status for your business, March 15th is a significant deadline. Missing this deadline can lead to penalties and delays, which can impact both your business and your shareholders.

In this article, we’ll walk you through everything S Corps need to know about the March 15th filing deadline and what steps you need to take to stay compliant.

What is an S Corporation?

An S Corporation is a special tax status that allows a business to pass its income, losses, deductions, and credits directly to shareholders, avoiding double taxation. Shareholders report their share of the S Corp's income and deductions on their individual tax returns.

However, to maintain your S Corp status and avoid penalties, your business must file an annual tax return by the March 15th deadline each year. If you miss this deadline, you may face penalties or lose your S Corp status, resulting in higher taxes.

Key S Corp Filing Requirements

For S Corps, the March 15th deadline applies to the filing of Form 1120S, the tax return for S Corporations. This form reports the income, deductions, and credits of the business. It is a crucial filing that impacts both the business itself and its shareholders. Here’s what S Corps need to keep in mind for the March 15th deadline:

1. File Form 1120S

Form 1120S is the tax return filed by S Corps to report their income and expenses to the IRS. It’s essential to file this form by March 15th, or you may face penalties. The form includes detailed information about the business's finances, including:

• Revenue and expenses
• Deductions
• Shareholder distributions
• Other important business information

2. Issue Schedule K-1 to Shareholders

In addition to filing Form 1120S, S Corps must issue Schedule K-1 to each shareholder by the March 15th deadline. The Schedule K-1 reports each shareholder’s share of the S Corp’s income, deductions, credits, and other tax items. Shareholders use the K-1 to report this information on their individual tax returns.

What Happens if You Miss the March 15th Deadline?

If your S Corp misses the March 15th filing deadline, you could face several consequences:

• Penalties: The IRS may impose late filing penalties on your S Corp if you fail to file by the deadline. This penalty can add up quickly.
• Loss of S Corp Status: If your S Corp fails to file for an extended period, you may lose your S Corporation status and be taxed as a regular corporation, which is subject to double taxation (corporate tax and individual tax on dividends). This can result in significant tax liabilities.
• Delays in Shareholder Filings: Shareholders won’t be able to file their personal returns until they receive their Schedule K-1. Delayed filing could lead to confusion and additional complications for both the business and shareholders.

What to Do If You Can't Meet the Deadline

If your S Corp is unable to file by March 15th, you can request an extension. However, it’s important to note that an extension only extends the time to file, not the time to pay. Any taxes owed must still be paid by March 15th to avoid interest and penalties. To request an extension, you need to file Form 7004 by the due date.

Steps to Take Now

To ensure you don’t miss the March 15th filing deadline, follow these steps:

1. Gather your financial documents: Collect all income and expense records, including balance sheets, income statements, and any deductions or credits your business is eligible for.
2. Prepare Form 1120S: Complete your S Corp’s tax return, Form 1120S, and ensure that it is filed by March 15th.
3. Issue Schedule K-1 to shareholders: Ensure that each shareholder receives their Schedule K-1, which they will need to file their personal tax returns.
4. Review business deductions and credits: Take advantage of any eligible deductions or credits to minimize your business’s taxable income.
5. Consult with a CPA: If you’re unsure about the process or need assistance, Nacca & Capizzi is here to help. We’ll ensure your S Corp files on time and accurately.

Why You Should Work with a Professional CPA

Filing taxes as an S Corporation can be complex, and missing the deadline can have serious consequences. Working with an experienced CPA like Nacca & Capizzi can help ensure that your S Corp meets all deadlines, files accurately, and takes advantage of all tax-saving opportunities. We can assist with:

• Filing Form 1120S and issuing Schedule K-1 to shareholders
• Tax planning to reduce liabilities and maximize savings
• Navigating the complexities of S Corp filings to avoid mistakes and penalties

Contact Nacca & Capizzi for Professional Help

If you’re an S Corp owner in Rochester, NY, or Greece, NY, don’t wait until the last minute to file. Let Nacca & Capizzi handle your tax filings and ensure your business stays compliant. Call us today at (585) 225-9290 or visit www.naccacpas.com to schedule a consultation.

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Disclaimer: This article is for informational purposes only and should not be considered as tax advice. Always consult with a tax professional, like Nacca & Capizzi, for personalized guidance based on your unique situation.