Both S Corporations and Partnerships that use the calendar year as their fiscal year must file their corporate tax returns by March 16, 2020 (since the 15th is a Sunday). C Corporations have until April 15. Have you ever wondered why there is a difference? To understand why this is the case, you have to consider who pays the tax.
With a C Corporation, the corporation files the return and submits the taxes owed. However, with both a Partnership and S Corporation, the return is filed and forms are sent to the partners or owners to include on their personal income tax return. Since individual returns are due April 15, it wouldn’t be helpful not to get the information prior to this deadline, so partnerships and S Corporations must file a month prior to that.
An S Corporation does have the option to file an extended return, giving them until September 15 to file. This should be avoided as much as possible, however, because of the burden it puts on all the shareholders that must now file for an extension, as well. If you are a shareholder who is held up by extended corporate tax returns, you have the option to file an extension and estimating your tax liability and sending it with the return, or completing your return with estimated figures and later filing an amended return.
At Proctor & Assocs., we are happy to prepare corporate tax returns for any type of entity, as well as individuals. If you are just starting a business, we can help you decide which business formation would be best for your situation. If time is running out and you need to file an extension for your S Corporation, don’t hesitate to contact us.