Section 1: High-Level Overview of 2023 Tax Deadlines
January 17th, 2023: All → Fourth Quarter Estimated Tax Payments.
January 31st, 2023: All → Form: 1099 – Payors send to Payees.
February 28th, 2023: All → File information returns (1099s) with IRS(paper).
March 31st, 2023: All → Form: W2 – Employers to send to employees.
March 31st, 2023: All → Form: 1099 – File information returns (1099s) with IRS (electronic).
April 18th, 2023: All → Form: 114 – FBAR-Filing (automatic extension available, no filing required).
April 18th, 2023: All → First Quarter Estimated Tax Payments.
April 18th, 2023: All → Second Quarter Estimated Tax Payments.
September 15th, 2023: All → Third Quarter Estimated Tax Payments.
October 16th, 2023: All → Form: 114 – Form 114/FBAR – Filing.
December 15th, 2023: All → Fourth Quarter Estimated Tax Payments.
March 1st, 2023: All Corps → Delaware Annual Franchise Report (for Delaware entities).
March 15th, 2023: C-Corp → Form: 7004 – Automatic Extension to File.
April 18th, 2023: C-Corp → Form: 1120 – File return and pay tax due.
April 18th, 2023: C-Corp → Form: 7004 – Automatic extension.
April 18th, 2023: C-Corp → Form: 1120 – File return and pay tax due.
October 16th, 2023: C-Corp → Form: 1120 – File return and pay tax due.
March 15th, 2023: S-Corp → Form: 1120-S – File return and pay tax due.
March 15th, 2023: S-Corp → Form: 2553 – S-Corp Election.
May 15th, 2023: Non Profit → Form: 8868 – Automatic Extension to File.
May 15th, 2023: Non Profit → Form: 990 – File return.
November 15th, 2023: Non Profit → Form: 990 – File return.
Partnership (including LLC):
March 15th, 2023: Partnership (including LLC) → Form: 1065 – File return and pay tax due.
September 15th, 2023: Partnership (including LLC) → Form: 1065 – File return and pay tax due.
April 18th, 2023: Sole Proprietorship → Form: 4868 – Automatic Extension to File.
April 18th, 2023: Sole Proprietorship → Form: 1040 – File return and pay tax due.
October 16th, 2023: Sole Proprietorship → Form: 1040 – File return and pay tax due.
Section 2: General Discussion on Several Prominent Tax Deadlines
Disclaimer: The following is essentially a personal opinion piece and is only for information consumption purposes. It is not intended to be tax advice or financial advice. For the sake of brevity, the following does not address each and every tax deadline, and therefore this is not an A-Z comprehensive in-depth guide. If of interest, please feel free to contact inDinero to assist you with comprehensive in-depth tax advice that is specifically tailored for your unique circumstances. https://www.indinero.com/talk-to-an-expert
Now is always a good time to start thinking about your business taxes. While the deadline for filing taxes for 2022 is April 18th, 2023, business owners shouldn’t wait until next spring to get started. Getting ahead on your business’ 2022 taxes can help save money by allowing you to maximize deductions, avoid potential penalties, and prevent getting sideswiped by new tax code changes for the 2022 tax year.
So whether you’re self-employed, or run a growing business, read on for everything you need to know about filing your 2022 taxes.
When are Taxes Due in 2023?
April 15th is widely known as the day personal and business taxes are due each year in the United States. However, the April 15th deadline isn’t always so cut and dry.
The date a business’ 2022 taxes are due depends on a few things and can vary from one business to another. These factors can include:
- Business type
- Fiscal year-end date
- Request for tax extension
Each of these plays into when a business must file federal taxes each year.
Taxes 2023 Tax Deadlines For Sole Proprietors
Deadline to File Taxes 2022 – Annual (Fiscal year end is December 31st)
Tax Day 2023: April 18th, 2023
Federal government taxes are due on April 18th, 2023. However, if that date falls on a weekend, taxes can be filed on the following Monday. In 2023, tax day falls on a Saturday; this means businesses have until midnight on Monday, April 17th to submit their 2022 tax file.
The last day to file taxes in 2023 is April 17th, 2023.
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Deadline to File Taxes 2022 – Fiscal (Business fiscal year is not December 31st)
On the 15th day of the fourth month after the fiscal year end.
Regarding C-corporations: if your business tax plan is on a fiscal year, your tax deadline will be the 15th day of the 4th month after the close of your business’ tax year. For instance, for a business which has a fiscal year end of April 30th, 2023, the business’ annual income tax return needs to be filed by August 15th, 2023. However, S-corporations and Partnerships only have 2 months and 15 days.
2023 Taxes: Deadlines For Businesses
|Business Type||Due Date|
|Sole Proprietorship||April 17th, 2023|
|S-Corporation Partnership||March 15th, 2023|
|C-Corporation Partnership||April 18th, 2023|
|Multimember LLC||March 15th, 2023|
|Partnerships||March 15th, 2023|
|Sole Proprietorships with fiscal year not ending on December 31st||15th day of the 4th month after the fiscal year end.|
What If I Can’t File My Business Taxes on Time?
Each year, many well-intentioned business owners underestimate the amount of time and expertise that’s needed to prepare a thorough and accurate annual business tax return. Unfortunately, those that don’t may be subject to hefty penalty and interest fees.
Businesses that cannot meet the deadline for the 2022 tax year should consider applying for a tax extension. The penalties for not submitting your business’ tax return can be costly and are in effect the day after your income tax return is due.
The Internal Revenue Service (IRS) will apply a Failure to File penalty to all businesses that submit their 2022 tax return late. The Failure to File Penalty is:
- 5% of the business’s unpaid taxes for each month or part of a month that a tax return is late. The penalty won’t exceed 25% of your unpaid taxes. However, the IRS charges interest on penalty fines.
- Generally speaking, it might potentially be wise to make a bit of a larger extension payment, so that one will have a refund and definitely avoid penalties, and then know that the additional refund will get rolled into their Q1 estimate for the next year (two birds with one stone).
The best way to avoid penalties from filing a late tax return is to apply for a tax extension on time.
Or, to avoid the stress of last-minute tax preparation, consider hiring an accountant or bookkeeper to help manage business finances throughout the year. This way, come tax time, you’ll have all the necessary documentation and records on hand, and can rest assured knowing that your return is in good hands and is penalty free.
What Is a Tax Extension?
A tax extension is an application filed with the IRS to get an additional six months to submit a tax return. The application can be filed electronically or on paper, and must be done before the original tax deadline.
The extension will typically give a business an extra six months to file their taxes. However, it’s important to note that an extension does not provide any businesses with more time to pay any taxes that are owed.
Penalties and interest will still be charged on any outstanding balances, so it’s crucial to file a tax extension if you think you might not make the original deadline.
Reasons to File for an Extension on a 2022 Tax Return
There are a few reasons businesses might need more time to file their taxes. These can include:
- You are waiting on paperwork or information from another party, such as Form 1099.
- Your business is complex, and you need more time to hire a reputable bookkeeping firm.
- You are business is expecting a net operating loss carryback.
- You need more time to organize employee plan documents.
How Do I File for a Tax Extension on My 2022 Business Tax Return?
The type of business you operate will determine which form to use when applying for an extension to submit your business’ 2022 taxes.
For sole proprietors and certain single-member LLC’s, fill out IRS Form 4868.
IRS Form 7004 should be used by corporations, partnerships, and multimember LLC’s seeking a tax extension.
Credit: Kindel Media
2023 Deadlines to File 2022 Taxes with a Tax Extension
|Business Type||Due Date|
|Sole Proprietorship||October 17th, 2023|
|S-Corporation Partnership||September 15th, 2023|
|C-Corporation Partnership||October 17th, 2023|
|Multimember LLC||September 15th, 2023|
|Partnerships||September 15th, 2023|
Note: The deadline to apply for a tax extension is the same date as the original 2023 tax return filing deadline. Only when an extension application is submitted will the tax return deadline be extended to the dates listed in the above table.
What Other Business Tax Deadlines Do I Need to Be Aware Of?
The day your business’ tax return is due is not the only tax-related deadline a business owner needs to be aware of.
For instance, employment tax, estimated tax payments, contractor tax forms and FICA contributions are examples of other tax deadlines the IRS requires you to pay attention to.
Federal Unemployment Taxes (FUTA) Deadlines
The Federal Unemployment Tax is paid by employers and is used by the IRS to fund unemployment benefits. Employers are required to pay their FUTA taxes quarterly; they are due one month after the end of each quarter.
FUTA payment deadlines for 2023 include:
- April 30, 2023
- July 31, 2023
- October 31, 2023
- January 31, 2024
The FUTA form, Form 941 is filed at the end of each quarter.
However, businesses with a small number of employees may be able to file their FUTA claim once a year instead of quarterly. Instead of Form 941, they are to use Form 944.
Businesses who file their FUTA taxes annually instead of quarterly must pay those taxes in full on January 31st.
Estimated Tax Payments
Businesses that expect to owe more than $500 in income tax upon filing must make estimated tax payments throughout the year. Estimated tax payments are to be made quarterly; they can be submitted online or, posted in the mail along with Form 1120-W.
When are Quarterly Taxes Due 2023?
The deadlines to submit your business’s quarterly estimated tax payments are as follows:
|Calendar Quarter||Estimated Tax Payment Deadline|
|January 1 – March 31||April 18|
|April 1 – May 31||June 15|
|June 1 – August 31||September 15|
|September 1 – December 31||January 15 of the following year|
Deadline to Send Tax Forms to Contractors
A business that works with contractors will need to report non-employee compensation using Form 1099-NEC. In this situation, the business must send Form 1099-NEC to the contractor no later than January 31.
When preparing your 2022 tax return, be sure to send the Form 1099-NEC to all contractors hired in 2022 and the IRS no later than January 31, 2023.
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Not All Deadlines Are Equal
The above list of tax deadlines is not an exhaustive one; every business is unique and can have varying tax schedules and deadlines. If you’re not sure what deadlines apply to you and your company, enlist our experts in business tax services.
It’s wise to adopt a year round approach to filing a business’s taxes. This will save time, money, and avoid headaches and allow the business to stay organized while submitting accurate tax documents and payments throughout the year.
Tax Changes Impacting 2022 Business Tax Returns
Taxation rules and obligations change regularly. Before starting to prepare your business’ 2022 tax return, it’s best to be sure you are up to date on the latest tax changes that may affect your return.
The Inflation Reduction Act 2022
The Inflation Reduction Act was passed in 2022 as a way to reduce the amount of taxes businesses have to pay. The act lowers the corporate tax rate, increases the standard deduction for businesses, and caps the qualified business income deduction at 50% of W-2 wages. These changes will impact businesses when filing their 2022 taxes in 2023.
If you have any questions about how the Inflation Reduction Act may affect your business, it’s best to consult with a tax professional or accountant. They can help you determine if your business will benefit from the changes and how to take advantage of all the deductions and credits available to you.
American Rescue Plan Act (ARPA) of 2021
The American Rescue Plan Act of 2021 was passed in March of 2021 in response to the COVID-19 pandemic. The act provides businesses with tax relief in the form of payroll tax credits, enhanced deductions for business expenses, and extended deadlines for filing and paying taxes.
As we have moved into the 2022 tax year, some ARPA benefits and credits for businesses have changed. Some notable changes include:
- Unemployment benefits are taxable in 2022.
- Businesses with more than $600 of income transferred through a mobile service payment app (i.e., PayPal, Venmo, CashApp, etc.) will be issued Form 1099-K from the service provider.
Credit: Nataliya Vaitkevich
Ready to Start Preparing Taxes for 2023? Let inDinero’s Experts Help
Preparing and filing taxes can be a complex and time-consuming process, especially for businesses. Having a team of experts by your side to tackle the heavy lifting of your tax needs will help ease the frustration of tax season and find ways to maximize your business’ tax deductions.
At inDinero, our accountants and tax professionals are always up to date on the latest tax changes. We offer a variety of services to businesses of all sizes, including tax preparation, filings, and consulting. We also offer fractional CFO services to help businesses with their financial planning and forecasting.
If you’re ready to get started or if you have any questions, please contact us today. We’d be more than happy to help you prepare for next year’s tax season.
Featured Photo Credit: Nataliya Vaitkevich