Among the classification of different types of businesses, we have independent owners or a single member of a Limited Lability Company (LLC sole member). And the last day for C corporation to file their tax report is on April 15, 2020. S Corporations, Partnerships, and LLC must file their taxes until March 15, 2020.
Remember that if you have any difficulty in submitting your report before or on the deadline, it is recommended to request an extension of six months. If you miss this date and do not request an extension, then you would have two types of penalties plus interest charges: one for sending it late and one for not paying before the deadline. Keep in mind that the later you pass the deadline, the more penalties and interests will be added to your account.
The penalties for sending the tax return of an S corporation or a Limited Liability Company late is $205 for each month and part of the month that the report is late and this penalty is multiplied by the number of partners. For example, deadline is March 15, you didn’t request extension and submitted on June 20 all with a corporation of 3 partners. Calculating the penalty with 3 months and 5 days, rounded up the number of months would be 4 months (4 months X 3 Partners X $ 205). This results in a fine of $ 2,460. Therefore, it is advisable to avoid sending your report late and if you have to delay submitting the report you must request an extension.
To be ready for your tax report, it is important to organize the documents of the corporation. The total income and the corresponding expenses are necessary to be able to make a report that gives you confidence that you fulfilled your obligation, and in which you applied everything necessary to establish amounts that correspond to you to discount as far as the law allows.
Review your documents that you originally used to create your corporation. Verify that your corporation is within the classification you chose for that year and have the Employer Identification Number (EIN) available. If for any reason you find it impossible to confirm what type of corporation it is, you can verify by telephone its classification with the Internal Revenue Service.
One of the most important aspects to point out is the type of professional that you are going to hire. Reliable professionals indicated to help you in your tax preparation are those who have credentials such as Enrolled Agents or CPAs.