Why Is a Corporate Extension Important?
The corporate tax filing deadline for all types of companies is March 15th. Whether you are an S-Corporation, Partnership, you must file a corporate tax return or submit an extension to avoid penalties.
The penalties for filing late (which means filing without having filed a tax extension) can be quite costly depending on how your company is structured.
The filing penalty for filing an S-Corporation (Form the 1120S) or a Partnership (Form 1065) is $195 per month per partner/owner multiplied by the number of months that the return is late, up to a maximum of twelve months.
This means that if a company is an LLC and taxed as a partnership; has 4 members and they file in July without filing an extension, this four-month delay in filing will end up costing a $3,120 penalty!!
If you were to file the extension timely, then you automatically have 6 months’ time to complete your tax filings, penalty free.
If you do not currently have a representative (Accountant, CPA, EA) for your business(es) that is isn’t handling your tax filings or filing extension to shield you from these penalties, we offer free filing of tax extensions to businesses.
If you are in need of an extension or guidance on how best to file your corporate tax filings, please call our office today at 678-765-6772.