As everyone is starting a very crazy and unfamiliar week with everything happening in the world, there has been a lot of talk over the last few days about a possible extension of the April 15th tax deadline. What has not been covered anywhere that i have seen or read, is the tax deadline that is in effect for TODAY, March 16th.
Today is the tax filing deadline for all companies that file their taxes as either an S-Corporation or as a Partnership. I know that there are a lot of companies in our industry set up as C-Corporations and that deadline is still one month away.
The penalties for filing late (which means filing after today but without having filed a tax extension) can be quite costly depending on how your company is structured.
The filing penalty for filing an S-Corporation (Form 1120S) or a Partnership (Form 1065) is $195 per month per partner/owner multiplied by the number of months that the return is late, up to a maximum of twelve months. This means that if a company is an LLC and it has 4 members and they file in July without filing an extension, this four-month delay in filing will end up causing a $3,120 penalty!! This obviously increases with more partners and/or an increased delay in filing.
The best part here, is that if you file the extension today, then you automatically receive a free extension of 6 months’ time to complete your tax filings, penalty free.
I am writing this today to make sure that all business owners are aware of this deadline and to make sure that if you have not filed your return and it is due today, to remind everyone to make sure that an extension is filed.
I have learned from working in this industry for close to 5 years that most companies are under a multiple-company structure, which means that this exposure to potential damages for filing returns late is multiplied.
To help avoid this issue, if you do not currently have a representative (Accountant, CPA, EA) for your business(es) that is either handling your tax filings or filing an extension to shield you from these penalties, we offer free filing of tax extensions to businesses. If you are in need of this protection, please call our office at 1-844-IRS-280E (1-844-477-2803) to speak to give us the information that we will need to file the extensions on your behalf. The last thing anyone in this industry needs is ANOTHER extra fine, fee, tax or penalty.
Please remember, the information above contains general information and it may or may not apply to your particular situation. It is strongly advised that you contact MyCannabisAccountant or your own tax adviser if you have any questions related to filing extensions, or any other tax issues related to your business.