When you are a business owner, it is essential to understand corporate tax returns and when you need to file them. This article will provide an overview of corporate tax returns, when they are due, and some common mistakes that business owners make when filing them. Understanding these concepts allows you to be better prepared to file your company’s taxes correctly and on time!
What They Are
A corporate tax return is a form businesses use to report their income, expenses, and other information to the government. This information is used to calculate how much tax the company owes. The return must be filed by the business’s financial year-end, which is usually December 31st.
When To File Them
Corporate tax returns are due on the 15th day of the fourth month after the end of the fiscal year. For example, if your company’s fiscal year ends on December 31st, you would need to file your corporate tax return by April 15th of the following year. If you are filing for an extension, you will have until October 15th to file your return. However, it is essential to note that even if you are granted an extension, you will still need to pay any taxes that are owed by the original due date of April 15th.
What Happens If You Don’t File Them?
If you don’t file your corporate tax return, the IRS can assess a penalty of up to 25% of the unpaid tax. The IRS may also file a notice of federal tax lien, a public record that could damage your company’s reputation. In extreme cases, the IRS can also pursue criminal charges for failure to file a corporate tax return. Therefore, ensuring your corporate tax return is filed on time and accurately is always in your best interest.
Conclusion
Corporate tax returns are a vital part of running a business. They ensure that you are paying your fair share of taxes and help to keep your company in good standing with the IRS. If you have any questions about corporate tax returns, be sure to speak with your accountant or financial advisor.
