Tax Alert: Don't Miss These September 15th Deadlines!

The busy tax season continues! For many US businesses, September 15th is a critical date with two important deadlines approaching fast. Make sure you're prepared to avoid penalties.

1. Extended S Corporation & Partnership Returns Due

If your business operates as an S Corporation (Form 1120-S) or a Partnership (Form 1065) and you filed for an extension earlier this year, your extended federal tax return is due by September 15, 2024.

• S Corporations: This includes filing your corporate income tax return and providing K-1s to shareholders.
• Partnerships: This includes filing your information return and providing K-1s to partners.

What to do:

• Ensure all necessary financial records are gathered.
• Review your completed tax returns carefully with your tax professional.
• File electronically or by mail well before the deadline.

Why it matters: Failure to file on time can result in penalties, even if you don't owe additional tax.

2. Third Quarter Estimated Tax Payments Due

For individuals, sole proprietors, partners, and S corporation shareholders who expect to owe tax of $1,000 or more (and corporations expecting to owe $500 or more), the third quarter estimated tax payment for 2024 is also due on September 15, 2024.

Estimated taxes are used to pay income tax, self-employment tax, and alternative minimum tax. The US operates on a "pay-as-you-go" tax system, meaning you're generally required to pay tax as you earn income throughout the year.

Who needs to pay estimated taxes?

• Individuals with income not subject to withholding (e.g., self-employment income, interest, dividends, rent).
• Partners in partnerships.
• S corporation shareholders.
• Businesses that operate as sole proprietorships or partnerships.

How to pay:

• You can pay online through IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or by mail with Form 1040-ES (for individuals) or Form 1120-W (for corporations).

Why it matters: Underpaying your estimated taxes can lead to penalties at year-end. Review your income and deductions to ensure your payments adequately cover your tax liability.

Next Steps & Recommendations:

• Review your records: Confirm all financial transactions are categorized and recorded accurately.
• Consult your tax advisor: If you have any questions or need assistance with filing or calculating estimated payments, reach out to your tax professional immediately.
• Don't wait until the last minute: Start preparing now to avoid last-minute stress.

Staying on top of these deadlines is crucial for maintaining compliance and avoiding unnecessary penalties for your business.