Tip Category: Miscellaneous
For the year 2024, the tax filing due date for S corporations and partnerships is on March 15. Missing the due date could cost you a hefty penalty even though you are not required to make a tax payment on the filing deadline.
Calculating the penalty is based on each month the tax return is late x each shareholder or partner of your business. Hence, if a business tax return with no tax due, filed the day after the March 15th due date, could cost a married couple who jointly own an S corporation $490 in penalties.*
In this blog, we will give you some ideal tips to avoid receiving penalties in the future.
Always FILE ON TIME. Always remind your fellow owners of an S corporation or partnership to file your business tax return on or before March 15, 2024. The advantage of filing on time is it allows you to shorten the time you have to file your individual tax return as well.
File an Extension. Just in case your entity cannot file the tax return in time, consider filing an extension on or before March 15th 2024. This will allow you to get extra six months to file your business return.
REMEMBER, you pay the taxes for your flow-through business on your Form 1040 tax return at this year's April 15th filing deadline.
Individual Tax Return may be DELAYED. That is because when you file for an extension for your business return, it is possible that it will also take effect on your personal tax return while you wait for the K-1. Do not file your Form 1040 tax return until you receive all your K-1s from each of your S corporation and partnership business activities.
REMEMBER, when you file for an extension, you may need to estimate how much you'll owe. An extension to file doesn't mean an extension to pay your taxes by April 15th.
Challenge the penalty. If your business does get hit with an IRS penalty for filing late, try to get the penalty abated. This is especially important if you file and pay your personal taxes on time.
If you haven't filed your S corporation or partnership return for 2024, there's still time to get it done or file an extension.
*The penalty calculation for 2024 S-corporations and partnerships is $245 for each month or part of a month (up to 12 months) the return is late, multiplied by the number of shareholders or partners.
Contact us and let our skilled OAHU Tax Experts offer their well-rounded tax advice and tailored tax solutions to help you file accurate tax reports. Diamond Head Tax Group is Honolulu's trusted source of tax filing services serving Waianae, Honolulu, Kapolei, Oahu and surrounding areas.
We are available to assist you with your Tax Needs.
Individuals ● Business ● Tax Advisory ● Payroll Services
