We’re already solidly into 2021. The IRS hasn’t properly handled 2019 tax returns completely yet, but that doesn’t mean your small business gets a pass on its filings. Here are some deadlines to watch.
Sole proprietorships use the same tax schedule as individuals. 2020 Form 1040 returns are due on 4/15/2021. You can request an extension with Form 4868. This will extend it until 10/15/21.
Non-resident US taxpayers have until 6/15 to file their tax forms. They can also get an extension with Form 4868.
If your business is an S corporation or a partnership, the return is due on March 15, 2021 or the 15th day of the 3rd month following the tax year. The S Corporation’s Form 1120S can be extended for 6 months with Form 7004. The partnership’s Form 1065 can also be extended with Form 7004.
C Corporations have until the 15th day of the fourth month following their year end. A 12/31 year end means a Form 1120 is due 4/15. A 1/31 year end means a Form 1120 is due 5/15. The returns can be extended for 6 months with a Form 7004.
Payroll withholdings and unemployment tax payments are submitted semi-weekly or monthly depending on your filing status. Employers must document deposits and distribute year-end tax documents to employees.
Businesses are allowed to defer withholding the employees’ payroll taxes on wages paid between 9/1/2020 and 12/31/2020. The employer could also defer the employer’s share from 3/27/2020 until 12/31/2020.
If you withheld payroll taxes during this period, they need to be paid by 4/30/2021. For the first four months of 2021, you’ll need to withhold additional payroll tax from employees’ checks to cover the amount that was deferred last year.
Certain businesses, including manufacturers, retailers, and trucking companies, are subject to excise tax. Depending on industry-specific requirements, excise tax is paid monthly, quarterly, or annually.
Tax Filings for Wages and Non-employee Compensation
There was a 1/31/2021 deadline for the following tax documents:
Forms 1097, 1098 and 1099
Forms 3921 and 3922
Forms W-2 and W-2G
Small businesses have until 2/28 to send corresponding copies to the IRS. Employers may also be required to submit Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips.
For electronic filings, the deadline for these filings is extended until 3/31.
Employment Taxes and Payroll Withholdings
Based on tax liability as reported on Form 941, Employer’s Quarterly Federal Tax Return, small businesses must deposit employment taxes monthly or semi-weekly. Items subject to this requirement include federal income tax, federal unemployment (FUTA) tax, and Social Security/Medicare (FICA) withholdings.
Additionally, employers must file payroll reports quarterly or annually using IRS Forms 941, 943, 944, or 945. Key deadlines for Form 941 are 4/30, 7/30 10/29 and 1/31/2022. There are additional deadlines for estimated income tax payments and state and local tax returns. The IRS says they answer 9% of the phone calls they receive. Everyone else gets hung up on.
Who is helping you with your tax questions this year? Contact Us to find out how we can help.