What’s your Company’s Business Tax Filing Deadline?

When it comes to tax planning, it’s never too early to start, or too late to plan. January is almost over, so it might make more sense to look back so you can learn from what happened last tax season, and make better plans for the current year. On the other hand, there’s no harm in trying to come up with some last-minute maneuvers (just legal ones) that can help reduce the sting of taxes. But it all has to be done before your business tax filing deadline.

File on Time

If you have been in business for a while, you might be used to following tax filing deadlines that have been in effect for some time for businesses following a calendar year; that’s March 15 for S Corporations and C Corporations, and April 15 for Partnerships. Due to a recent bill passed by Congress and signed into law by President Barack Obama, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, some tax filing due dates have been adjusted, particularly for those in business.

Starting this year, the business tax filing deadline for Partnerships (Form 1065) has been moved one month early, from April 15 to March 15. The filing deadline for C Corporations (Form 1120), on the other hand, has been moved one month later, from March 15 to April 15. The filing deadline for S Corporations (Form 1120S) remains unchanged at March 15.

To avoid being slapped with unnecessary fines and penalties, make sure you adhere to the new business tax filing deadline.

Apply for an Extension if Needed

While some tax filing due dates have changed, the prerogative to ask for an extension hasn’t. So if you are not yet fully prepared to file on your original due date, take advantage of the special consideration being given by the IRS and apply for a 6-month extension (Form 7004) not later than your original due date. For example, a request for extension should be filed by a C Corporation on or before April 15.

Based on the revised due dates, extension deadlines are as follows: September 15 for Partnerships and S Corporations; October 15 for C Corporations.

Don’t worry, Practical Taxes can help you submit the tax filing extension if you need more time.

Review your Deductions

Based on Section 179 of the Internal Revenue Code, you can opt to recover the entire cost or part of the cost of certain qualifying property by deducting it in the year you used it for your business. Starting from 2014, that’s a deduction of up to $500,000 from eligible business expenses such as office furniture and fixtures, business machinery and equipment, computers, software, and many other depreciable properties.

If your business is involved in one of the following industries: architectural and engineering services, construction, film production, or manufacturing, then it might serve you well to look into Section 199 of the IRS Code. Basically, this allows you to deduct up to 9% of your income that is directly derived from qualifying activities related to manufacturing done on U.S. soil.

If you use your home or part of it for your business, make sure you do not forget to take advantage of what is known as the home-office deduction. Based on the simplified version, you can deduct up to $5.00 per square foot (up to 300 square feet) for a maximum deduction of $1,500.00.

Practical Taxes Does Business Tax Filing

As a business owner, you have a lot on your plate. You have to worry about the ins and outs of running a business, worry about employees, worry about the bottom line, and make sure everything is going well with the business. The last thing you want to worry about is whether or not your taxes were done right.

Practical Taxes has you covered. We will prepare your taxes, make sure everything is filed, and ensure that you are getting the largest refund possible.

Give us a call at 406-894-2050 to schedule an appointment.