Staying On Top Of Your Business Tax Deadlines

Saturday, 20 May 2023, 2:27 pm
Press Release: Hugh Grant

As a startup, one of the critical things to keep in mind is your tax deadlines. Filing and paying taxes on time will help you avoid penalties, interests, and other legal implications that may arise from late filing. To ensure that you are up to date with your tax deadlines, Cleer.tax has created a comprehensive 2023 Tax Deadline Calendar for Startups. In this article, we will break down the tax deadlines and explain why staying on top of them is crucial.

January and February Deadlines

The year's first tax deadline is on January 31st. It is the date by which you must make payments to employees and independent contractors. You will also need to file forms such as 1099-NEC, 1099-MISC, 1099-K, W-2, and W-3. By February 1st, you must have opted out of the federal and state returns extension, a deadline set by Cleer.tax. Note that extensions are recommended due to the $25,000 penalty risk for missing Form 5472 foreign investment information. February 22nd is the deadline for submitting documents for the Partnership March deadline.

March Deadlines

The month of March is significant for startups when it comes to tax deadlines. March 1st is when the Delaware Franchise Annual Report and Tax are due. This is calculated by shares issued and assets at year-end. On the same day, S-Corp and Partnership Extensions are due. This includes the filing of 1065-Partnerships, 8805-Partnerships, 1120-S-Corps, and 1042s-Corporations. Note that you can file an extension to avoid penalties on a per-partner and per-month basis. The IRS assesses penalties on late 8805s and 1042 for dividends and owner payouts. March 15th is also the C-Corp and S-Corp elections deadline. It must be filed within 75 days of the start of the tax year. Benefits foreign-owned LLC members to be taxed as a C-Corp, while US C-Corp shareholders can save taxes as an S-Corp.

By March 24th, if taxes are owed this year, financials must be sent to Cleer.tax to calculate taxes and prevent penalties. Finally, March 31st is the deadline for most payout information returns, including 1097, 1098, 1099s, excluding NEC, 3921, 3922, and W-2G.

June Deadlines

June marks the start of the second half of the year, and tax deadlines are still looming. On June 15, estimated taxes for the second quarter are due for individuals and corporations. These payments cover taxes owed on income earned between April 1 and May 31. It is important to keep in mind that this payment is not a final tax payment, and any adjustments can be made when the annual tax return is filed. In addition, businesses that use a fiscal year rather than a calendar year as their tax year, have their tax return due on June 30.

September and October Deadlines

Moving into the third quarter, September marks another significant tax deadline. On September 15, estimated taxes for the third quarter are due for individuals and corporations. This payment covers taxes owed on income earned between June 1 and August 31. Additionally, corporations with a fiscal year-end date of May 31 have their tax return due on September 15. For partnerships and S corporations that use a calendar year as their tax year, September 15 is the deadline to file their tax return as well. It is crucial to keep track of these deadlines to avoid any potential penalties, interests, or legal implications that may arise from late filing.

Why Staying on Top of Tax Deadlines Is Crucial

Missing tax deadlines can have serious implications for your business. Late filing and overdue payment penalties can add up and reduce your profitability. For instance, you risk a $25k penalty for 5472 late-filing (corporate income tax), $10k for 5471, FBAR, 8938 foreign banking, per month penalties partnerships & S-corps, DE late filing both a fee and a percentage, late-filing fees for corporate tax owed, delinquent payment penalties, and state late filing penalties.

Late filing can also attract legal implications, damage your business's reputation, and reduce investor confidence. In contrast, timely filing and payment of taxes help build a positive image for your business, build investor trust, and strengthen your brand.

In conclusion, as a startup, it is crucial to stay on top of your tax deadlines. Cleer.tax has created a comprehensive 2023 Tax Deadline Calendar for Startups to help you keep track of these deadlines. Ensure that you meet all the deadlines and file and pay your taxes on time to avoid penalties, interests, and other legal implications that may arise from late filing. Stay on top of your tax obligations to maintain good financial health and avoid any potential complications that could arise from noncompliance. By using Cleer.tax's tax deadline calendar and keeping accurate records of your financial transactions, you can streamline your tax preparation process, save time, and reduce stress. Ultimately, taking care of your tax obligations is an essential part of running a successful and sustainable startup, and it is a responsibility that should not be taken lightly.

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