Tax season is upon us, and for many individuals and businesses, March 15th marks an important deadline. March 15th is the deadline for several tax-related filings and payments, including partnership and S corporation tax returns, as well as estimated tax payments for the first quarter of the year.
Partnership and S corporation tax returns, also known as Form 1065 and Form 1120-S respectively, must be filed by March 15th. These types of entities are pass-through entities, meaning that the profits and losses are passed through to the individual owners or shareholders, who then report their share of the income or loss on their individual tax returns. It’s important to note that even if a partnership or S corporation doesn’t have any income to report, they are still required to file a tax return. Failure to file can result in penalties and interest.
In addition to filing tax returns, March 15th is also the deadline for making estimated tax payments for the first quarter of the year. Estimated tax payments are quarterly payments made by individuals and businesses to the IRS to prepay their tax liability for the year. These payments are typically made by those who are self-employed or have income that isn’t subject to withholding, such as rental income or investment income.
It’s important to make estimated tax payments on time to avoid penalties and interest. The IRS requires taxpayers to pay either 90% of their current year tax liability or 100% of their prior year tax liability (110% for high-income taxpayers) through estimated tax payments. Failing to meet these requirements can result in underpayment penalties.
For those who need more time to file their partnership or S corporation tax returns, an extension can be requested by filing Form 7004 by the March 15th deadline. This extension will give taxpayers an additional six months to file their tax return, but it doesn’t extend the deadline for paying any taxes owed. Estimated tax payments are still due by March 15th, even if an extension is granted.
In conclusion, March 15th is an important deadline for taxpayers who need to file partnership or S corporation tax returns or make estimated tax payments for the first quarter of the year. Failing to meet these deadlines can result in penalties and interest, so it’s important to stay on top of your tax obligations. If you have questions or need assistance with your tax filings, it’s recommended that you consult with a qualified tax professional.
