While April 15 gets all the buzz, September 15 is no slouch in the federal income tax deadline department.
Corporations and partnerships that opted to extend on the 2013 filing deadline are coming up on last call for filing.
S corporation returns (Form 1120S), partnership returns (Form 1065) and fiduciary returns (Form 1041) that were extended in the spring are due September 15.
Failure to file can result in an IRS penalty.
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“Putting your tax returns on extension can be a good thing but penalties to miss the extension deadline can be steep,” said Mark Vitek, certified public accountant and owner of Mark Vitek CPA accounting firm in Raleigh.
Small-business owners need to remember that September date – it’s when the third installment of quarterly estimated federal income taxes is due.
Estimates on taxes owed are paid by the self-employed and those who receive money that isn’t subject to withholding or reported on a W-2 form, as well as interest income and dividends.
Also, proprietor schedule C filers, S corporations, partnerships, LLCs and other flow-through entities need to estimate unpaid income and self-employment taxes from Jan. 1 through Aug. 31. Half of that amount is due to the IRS or N.C. Department of Revenue by Sept. 15 and the other half is due by Jan. 15, Vitek said.
Courtney Campbell, a CPA who owns a Cary accounting practice said she advises clients to beat that Jan. 15 deadline.
“If they want to deduct it on their 2014 tax return they need to make that personal tax estimate before the end of December,” she said.
And as we inch closer to the fourth quarter of 2014, accounting professionals encourage small-business clients to review their personal and business financial situations.
“This is the time of year in our CPA practice that I work with small-business owners and individuals to perform tax checkups to help them project their tax liabilities for 2014 and make tax recommendations of moves they can make between now and year-end,” Vitek said.
Campbell also encourages small-business owners to look toward retirement as a place to reduce tax liability.
“Talk to your financial adviser and talk to your CPA about possibly contributing to a retirement plan that could be deductible for you and nontaxable income so you get to keep more of your money,” Campbell said.
And she says the time is now to begin preparing for 2014 tax returns.
“Don’t wait until January to start trying to get your books in order for your tax return so you don’t have to extend,” she said. “(Owners) need to go ahead and find someone now to review their books if they haven’t all year. Because there is a whole year worth of data they have got to get straight.”