No. I am not worried about the “unlucky” number 13 that is today’s secular date. (It is also Shushan Purim, 15 Adar.) I’m worried that many of you have forgotten that the rules have changed.
For years, corporations (C entities) had to file their tax returns by the 15th of March. Pass-throughs (these firms pay no corporate taxes; the profits and losses pass through to their stockholders, who pay the taxes as part of their personal tax returns) had until 15 April.
No more. In a stroke of common sense, the US has changed their deadlines to the 15th of March. That way individuals don’t have to fret about meeting their personal tax deadlines- now they’ll have their K-1’s with enough time to prepare their individual taxes.
(If you are an employee of a firm, you receive a W-2 that details the pay you received and the taxes withheld. If you are an independent contractor, you get a 1099 listing your “non-employee compensation”. Both of those are due to be mailed by the 31st of January. [That’s the law- despite the fact that a few new clients dropped off their tax data…with no 1099s prepared this weekend.]
But, stockholders in pass-through businesses receive a K-1 that details the profits, losses, depreciation, etc. [based upon their percentage ownership] to include on their personal tax submissions.]
These new rules affect partnerships (who file a 1065), S corporations (who file an 1120S), and LLC’s (these can file a 1065 or an 1120S, depending upon how they’ve chosen to operate). If you are a solopreneur or run an unincorporated business, then your business data gets compiled on the Schedule C of your personal tax return (a 1040). A C corporation (normally larger entities) now has a due date of 15 April. (NOTE: This year the due date is NOT 15 April, but 18 April, due to holidays and weekends.)
So, get cracking. Get those forms completed. Because the penalties for late K-1’s also went up this year. And, penalties are never deductible.
(We still have a few slots left to help you get your taxes done on time. But, don’t wait until 5 PM on Wednesday- that won’t do. Plus, our fee structure increases each hour closer to the deadline. )
Getting ready to do your taxes yourself? This will inform you of what has changed for this year’s filing season. (Of course, you can contact us- we’ll ensure that you pay the lowest amount of taxes required by law. 🙂 )