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Prevent a Balance Due

Prevent a Balance Due

Important Deadlines and Ways to Minimize/Prevent a Balance Due

FIRST, MEET THE DEADLINES

For 1040 Income Tax Returns:

1040 Filing Deadline- Generally April 15 of the following year (exact date depends on the calendar year).

Estimated Tax Payments: Estimated tax payments allow you to estimate how much you may owe and pay it off throughout the year to avoid a penalty or offset a balance due.

Deadlines for 1040 Estimated Tax Payments:
Due on the 15th day of the 4th, 6th, 9th months of your tax year, and on the 15th day of the 1st month after your tax year ends.

Fiscal Taxpayers

If you file your income tax return for a fiscal year rather than the calendar year, you must change some of the dates in this calendar.

First Quarter: January, February, and March.
Second Quarter: April, May, and June.
Third Quarter: July, August, and September.
Fourth Quarter: October, November, and December.

1120 Tax Returns (Corporations and S Corporations)

1120 Filing Deadline – March 15 of the following year.

Rejected extensions which were timely filed on march 15 must be re-transmitted electronically within 5 calendar days of the deadline.

Rejected tax returns which were timely filed on March 15 must be re-transmitted electronically within 10 calendar days of the deadline.

Estimated Tax Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s tax year.

Form 2553. This form is used to choose S corporation treatment. It is due no more than two months and 15 days after the beginning of the tax year the election is to take effect or at any time during the preceding tax year.

1065 Tax Returns (Partnerships)

1065 Filing Deadline- April 15 of the following year.

Estimated Tax Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s tax year.

WAYS TO MINIMIZE / PREVENT A BALANCE DUE ON THE TAX RETURN

Estimated Taxes

Estimated tax payments allow you to estimate how much you may owe and pay it off throughout the year to avoid a penalty or offset a balance due.
Benefits: Reduces or eliminates a large balance due at the end of the year.
You can adjust payments to fit your budget, as well as avoid penalties at the end of the year.
Remember, estimated taxes are generally due the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s tax year.

Penalties: Underpayment of Tax

If you did not pay enough income tax and self-employment tax for the tax year by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. The IRS will figure the penalty for you and send you a bill.

Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount.

Payments with Extension to file

What is it?
A tax extension grants you more time to file your tax return, but it does not give you more time to pay your tax liability.

Why would I file it?

If you owe taxes and you are not ready to file your tax return, you should file for an extension and pay at least 90% of your tax bill to avoid late payment penalties.

When:

Tax extension requests are due on the same day as tax returns. An extension gives you 6 more months to file a tax return. After April 17, 2012), you can no longer e-file a tax extension for 2011, but you can still prepare and e-file a tax return.

We are not a law firm. We employ attorneys, enrolled agents, and CPA’s.

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