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For most Americans, tax day comes once a year. However, this is not the case with businesses. If you own a business, you must file tax returns regularly. From quarterly income tax payments to payroll tax payments, there are deadlines to meet. Below are the deadlines small businesses should consider and when they will occur in 2023. Consider working with a financial advisor if you are considering tax automation for small businesses.
Estimated tax payment deadlines for small businesses
Anyone who earns money independently, from businesses to freelancers, is required to file estimated income tax. These are commonly known as “quarterly” because they are filed roughly quarterly.
The IRS requires this for several reasons. The main reason is to even out agency income. Instead of collecting money once a year, the estimated tax amount ensures that money comes in on a regular basis. Also, quarterly payments make it more likely that certain businesses and individuals have money on hand. Many small businesses don’t secure their taxes properly, and if the IRS waits for his year’s taxes at once, it will be difficult to collect.
Your quarterly tax is the estimated amount of income tax you owe based on your income since your last estimated payment (usually the last three months). You can fully calculate all income, deductions, and expenses to determine the correct current tax amount, or you can apply the past year’s tax amount to the previous quarter’s income. This is why it’s called an “estimated” tax due because the IRS allows calculations on the back of the envelope.
In 2023, quarterly taxes must be filed on the following dates:
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First quarter from January to March: Deadline April 18, 2023
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Second Quarter of April-May: Deadline June 15, 2023
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Third quarter from June to August: Deadline September 15, 2023
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Q4, September to December: Deadline January 16, 2024
Small Business Income Tax Deadline
Like individuals, businesses must also file income tax returns each year. The deadlines by which you must file these taxes will vary depending on the nature of your business, but here are the deadlines by which you must file your taxes or apply for an extension:
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Partnerships, LLCs, and S Corporations Using Calendar Years: Deadline March 15, 2023
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C Corporates and sole proprietorships using calendar years: Deadline April 18, 2023
The IRS has scheduled Tax Day for Tuesday, April 18, 2023, as Washington, DC, recognizes a local holiday known as Emancipation Day on Monday, April 17, 2023. But they are not small businesses.
Please note that corporations with an annual system are not eligible. If you use fiscal year accounting, you must file your taxes by the 15th day of the fourth month after the end of the fiscal year, adjusting for holidays and weekends.
Also, remember that two rules generally apply when it comes to filing deadlines with the IRS. First, if submitted electronically, it will be considered submitted on time as long as the form is submitted by midnight local time on the submission deadline date. Second, if the form is submitted in hard copy, it will be considered on time as long as it is postmarked by the deadline.
Small business tax form deadline
Running a business requires relatively frequent contact with the IRS. I won’t go into the full list of monthly payroll tax returns. See the IRS’s complete tax calendar for that level of granularity. However, there are some important unique deadlines to be aware of:
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Employees must receive a W-2 form. January 31, 2023
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Independent contractors must receive a 1099 form. January 31, 2023
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For 2023 taxes, switch your business selection to S-Corporation. March 15, 2023
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Use the calendar year to file business taxes after extensions, partnerships, LLCs, and S corporations. September 15, 2023
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Extended Business Tax Filing, C Corporations and Sole Proprietors Use Calendar Year: October 16, 2023
There are some important things to remember. First, the deadline for employees and contractors to receive their tax documents is different from most other his IRS deadlines. In that case, the documents must be obtained electronically or in hard copy by January 31st.
Second, the tax extension gives you an extra six months to file your paperwork, but you must make your estimated tax payments in March or April (depending on the nature of your company). is significantly less than the final tax due, the IRS will charge an overpayment penalty.
Small business payroll tax deadline
All organizations with employees must also process payroll tax filing and payment. Employee payroll tax and income tax withholding must be paid on a regular basis. Payments are typically made monthly or bi-weekly depending on the nature of your business.
In addition to these payments, you must regularly file payroll tax forms with the IRS. Some very small businesses can do this by filing a Form 944 with their annual return, but most businesses pay their paychecks by filing a Form 941 on a quarterly basis. Process tax returns. If this document indicates that there are additional taxes on top of the deposits already made, those payments will be made one month after submission.
These deadlines are:
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First quarter from January to March: The deadline for submissions is March 31, 2023.Due date April 30, 2023
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Second Quarter, April-June: The deadline for submissions is June 30, 2023.Payment due date July 31, 2023
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Q3, July-September: The application deadline is September 30, 2023.Due Date October 31, 2023
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Fourth Quarter from October to December: The application deadline is December 31, 2023.Due date January 31, 2024
Conclusion
Running a small business involves frequent contact with the IRS. From payroll taxes to estimated quarterly tax deadlines for small businesses are critical to avoid penalties and fees. In fact, you may even be forced to dissolve your legal entity for your business if you fail to meet certain deadlines. It may be the method of
tax planning tips
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Good financial advice isn’t just for individuals. A financial advisor can also help if you are running a business and need better tax planning and management. Financial he is not difficult to find even if he does not have an advisor. SmartAsset’s free tool matches you with up to 3 vetted financial advisors serving your area and allows you to interview advisor matches for free to determine which advisor is right for you. increase. If you’re ready to find an advisor who can help you reach your financial goals, get started now.
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Small businesses have their own set of credits, deductions, expenses, etc. Declare everything you are entitled to and try to keep your taxes as low as possible.
Photo credit: ©iStock.com/Zinkevych, ©iStock.com/AJ_Watt, ©iStock.com/Dan Rentea
The 2023 small business tax deadline post was first published on the SmartAsset blog.
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