September 15 marks an important deadline for S corporation and partnership income tax return filing as well as estimated tax payments for individuals, estates, trusts, and C corporations.
Federal income tax returns for S corporations (Form 1120S) and partnerships (Form 1065) on extension must be filed on or before September 15.
In lieu of federal income taxes, shareholders of an S corporation and partners of a partnership are taxed on their proportionate share of the company’s taxable income. Therefore, Schedule K-1s should be immediately forwarded to shareholders and partners to be reported on their individual, business or fiduciary income tax returns.
State income tax returns for S corporations and partnerships on extension might also be due September 15, depending on the state. It’s important to also note that S corporations and partnerships may be required to pay applicable income taxes in the states in which they operate by September 15.
Estimated federal tax payments for the third quarter of the 2022 tax year for individuals (Form 1040-ES), estates and trusts (Form 1041-ES) and C corporations (Form 1120-W) are due by September 15. Individuals can remit payment via mail or pay online. Estates and trusts can also remit payment via mail or may be eligible to utilize the Electronic Federal Tax Payment System (EFTPS). Corporations are required to make their estimated tax payment using the EFTPS. Additionally, estimated tax for certain states may also be due September 15.
An S corporation may be required to make estimated tax payments if the tax on built-in gains, excess net passive-income tax, and/or investment credit recapture tax is $500 or more.
As always, consult your tax professional for assistance in preparing and filing your company’s income tax returns and determining the amount of any applicable tax due by the September 15 deadline.
Author, Dyan Cole
Director of Operations
Spiegel Accountancy
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.