Here are some key tax dates for your diary.
12th – Employees need to report to their employer tips earned in February of more than $20
15th – Corporations file form 1120 and pay tax for 2011 calendar year ends. To get automatic 6 month filing extension file form 7004 by this date.
15th – S Corporations file form 1120S and pay any tax for 2011 calendar year ends. Give Sch K-1 to all shareholders by this date. To get automatic 6 month filing extension file form 7004 by this date.
15th – If electing S Corporation status starting with 2012 calendar year, file form 2553
20th – Chandler Sales Tax Return needs to be filed
20th – Arizona Sales Tax Return needs to be filed
The big one this month for small businesses is the S Corporation 1120S Tax Return filing deadline. If you do not think you have all your accounting information ready to meet the filing deadline make sure that your accountant or tax preparer files the automatic 6 month extension, form 7004, before March 15th. If you do this, let your shareholders know that you have filed the extension so that they can file an extension for their own individual tax returns if you do not anticipate filing the 1120S before the April 17th individual tax return deadline.
Remember, if you fail to file the automatic extension the penalty for late filing of the form 1102S starts at $195 per month times the number of shareholders. Plus there is a $100 penalty for each failure to timely issue Schedule K-1 to each shareholder. These penalties can add up significantly if there is any delay in filing the form 1120S.
Posted by Mark Smith a tax preparer and accountant with over 28 years tax and accounting experience. He is the owner of Cranmere Accounting and Tax Services LLC and can be contacted on (480) 363-4808 or by email at firstname.lastname@example.org.
Disclaimer – This article does not constitute personal tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate tax planning depends on your personal and unique circumstances.