Post a new topic
    3 Replies Latest reply on Apr 7, 2009 4:02 PM by dublincpa

    Didn't know S corp taxes due 3/15. What do I do,now?

    cathyjbeck Newbie

      Also, after loosing his job, my husband & I started a new business. We having been living on our retirement investments as well as starting the business. We have no income from the business yet. How do I do my taxes for personal as well as business. Please help, I am very nervouse about all of this.
        • Re: Didn't know S corp taxes due 3/15. What do I do,now?
          DomainDiva Ranger
          Corp returns are due March 15, 1040's by April 15.

          Go ahead and prepare both returns and send them in. You can figure penalties and interest using the tax tables and send a check. If not, the IRS will send you a bill. If you are able, get a CPA to handle the returns for you.

          It's OK and the sky is not falling.
            • Re: Didn't know S corp taxes due 3/15. What do I do,now?
              cathyjbeck Newbie
              Thank you. I feel a little better. I can't find an accountant locally who can help me until after April 15th, so if I use TurboTax for my personal taxes, how do I show the money invested in the new business?
                • Re: Didn't know S corp taxes due 3/15. What do I do,now?
                  dublincpa Scout

                  I don't want to sound condescending, but based on the questions you are asking, I would advise waiting for a professional, local or otherwise. Any income or loss from the S Corp gets reported and taxed on the 1040's of the shareholders according to their % of ownership. This means that the corp work needs to be done first.

                  There is an 1120S late filing penalty of $85 per month per shareholder, but there is no tax due to the feds. So that helps. In addition, there may be late filing and late payment penalties and interest at the state level if your state taxes S Corps. They will likely be 1%-1.5% of the tax due per month. If your state's filing deadline for S Corps is later than 3/15, be sure to file an extension and pay an estimate of S Corp state tax at that time. You may be able to avoid state penalties altogether.

                  If you can't file your 1040 prior to 4/15, get extensions and pay estimates there as well.

                  Finally, a tax pro might even be able to help you avoid some or all of the penalties. That is about knowing which buttons to push.

                  Feel free to contact me with questions about any of these items.