This was definitely an interesting year for taxes. We saw everything from tax extensions and exemptions, to small business loans and stimulus checks. However, this effort to help people and small businesses through the pandemic has brought implications for filing taxes this year. Here we take a look at the important tax dates for small businesses, and take a small dive into federal versus state taxes. We also answer some important questions you may have regarding taxes.
Important Tax Deadlines and Dates
| January 15, 2021 | 4th-quarter 2020 estimated tax payment due If you’re self-employed or have other fourth-quarter income that requires you to pay quarterly estimated taxes, get them postmarked by January 15, 2021. | |
| April 15, 2021 | 1st-quarter 2021 estimated tax payment due If you’re self-employed or have other income that requires you to pay quarterly estimated taxes, get your Form 1040-ES postmarked by this date. | |
| May 17, 2021 | Individual tax returns due for tax year 2020 The due date for filing tax returns and making tax payments is May 17, 2021. If you haven’t applied for an extension, e-file or postmark your individual tax returns by midnight. The Individual Tax Return Extension Form for Tax Year 2020 is also due on this day. | |
| May 17, 2021 | Last day to make a 2020 IRA contribution If you haven’t already funded your retirement account for 2020, do so by May 17, 2021. That’s the deadline for a contribution to a traditional IRA, deductible or not, and a Roth IRA. However, if you have a Keogh, SEP, or other eligible plan and you get a filing extension to October 15, 2021, you can wait until then to put 2020 money into those accounts. | |
| June 15, 2021 | 2nd-quarter 2021 estimated tax payment due If you’re self-employed or have other income that requires you to pay quarterly estimated taxes, make sure your payment is postmarked by this date. | |
| September 15, 2021 | 3rd-quarter 2021 estimated tax payment due If you’re self-employed or have other income that requires you to pay quarterly estimated taxes, make sure your third-quarter payment is postmarked by September 15, 2021. | |
| October 15, 2021 | Extended individual tax returns due If you got a filing extension on your 2020 tax return, you need to complete it and e-file or have it postmarked by October 15, 2021. | |
| January 15, 2022 | 4th-quarter 2021 estimated tax payment due If you’re self-employed or have other income that requires you to pay quarterly estimated taxes, get them postmarked by January 15, 2022. |
Important Federal/State Information
Federal
1065 (for multi-member LLC’s, single-member LLC’s do not need this) — March 15th (Sept 15th with extension)
1120S (for LLCs and Corporations with s-corp election) — March 15th (Sept 15th with extension)
1099’s & W2’s must be mailed to employees — February 1st
1099’s must be mailed to IRS — March 1st
941’s (Employer’s payroll) must be filed quarterly — April 30, July 31, October 31, and January 31
State (TN)
Business Tax — April 15th
Franchise & Excise Tax (F&E) — April 15
Annual Report Filing with Secretary of State (for LLC’s, Corporations, & S-Corps) — April 1st
Sales & Use Tax (We recommend paying monthly, but you can also pay quarterly)
Q1 – April 20th
Q2 – July 20th
Q3 – October 20th
Q4 – January 20th (following year)
What do I do if I miss a tax deadline?
If you missed one of these key tax deadlines, don’t worry because there are some options. These entirely depend on what deadline was missed, and whether you owe money or are due a refund. We recommend you consult with a tax advisor or CPA about missing a tax deadline.
What if I miss the tax filing deadline and are owed a refund?
If you overpaid for the 2020 tax year, there’s typically no penalty for filing your tax return late. However, you should file as soon as possible. Typically, you have three years from the tax return due date to claim a tax refund. That means for 2020 tax returns, the window closes in 2024. After three years, unclaimed tax refunds become the property of the U.S. Treasury.
What if I miss the tax filing deadline and owe tax?
When you miss a tax filing deadline and owe money to the IRS, you should file your tax return as soon as possible. Every day your tax return is delinquent, the IRS typically charges interest, failure to file penalties and failure to pay penalties until you file your return and pay the balance due.
What if I miss an estimated tax payment deadline?
If you miss an estimated tax payment, make your payment as soon as you can. The penalties and interest the IRS charges depend on how much you owe and how late you are, but you can minimize the damage by making your payment as soon as possible.
Natural Disasters
If you need more time because you live in an area hit by a natural disaster, you might qualify for tax relief from the IRS. The IRS often postpones the tax filing deadline for taxpayers who live in or have a business within a federally declared disaster area.
What if I made a mistake and need to refile my taxes?
This happens often but don’t worry, you don’t need to redo your whole return. Simply file an amendment using Form 1040X. IRS Form 1040X is a two-page form used to amend a previously filed tax return. The SPB team can help you accomplish this.
Southern Payroll & Benefits always has you covered.
Many people get stressed out trying to figure out when taxes are due every year. You can be confident that the Southern Payroll & Benefits team will be able to help you with your important tax deadlines. If you are looking to file your taxes or need advice, please don’t hesitate to contact us.
