S-Corporations are classified as pass-through taxation entities, and by which, they aren’t required to pay income tax at a corporate level. Instead, the profits, losses incurred by the business are reported on the tax returns of the individual shareholders. Hence, the tax dues if any has to be paid at the individual level. Even then, S-Corporations are mandated to file their informational tax return each year to report the taxes it withholds from the employee wages.
When an S-Corp misses the tax deadline to file Form 1120-S, they can request for an automatic extension of time by filing Form 7004- the s-corp IRS extension form.
IRS filing deadline for s corporations
The S-Corporations have an obligation to file their annual tax return Form 1120-S by the 15th day of the third month after the tax period ends. And, apart from this, an S-Corp has the responsibility to issue Schedule K-1 to all shareholders that have the mentioning of the individual shareholder’s share of the corporation’s income for that particular tax year.
Steps to file an extension for S-Corp taxes online
With ExpressExtension, you can e-file s corporation extension in simple steps. The two important steps are to choose the tax form for which an extension is sought and to calculate the tentative total tax.
What is the S corp late filing penalty?
If the s corp doesn’t pay the taxes by the due date, a penalty of 0.5% is imposed on the unpaid tax for every month the tax remains unpaid, and the maximum penalty can go up to 25% of the unpaid tax. And, after that, if the business doesn’t file s corp tax filing extension form to extend the filing deadline, they will incur a 5% penalty of the unpaid tax for every month the return is delayed. The penalty rate can go up to 25%.