When you own a business, it’s important to pay your business taxes on time throughout the year. You’ll need to ensure you file your business taxes with the IRS, pay estimated taxes quarterly, and make employee withholding payments on time throughout the year.
Whether you’re a sole proprietor, the owner of a partner or single-member LLC (limited liability company), or the founder of a large corporation or startup, it’s important to know when your business taxes are due to the IRS and pay them on time to avoid penalties and legal action.
In this guide, we’ll walk you through the specific dates you should be aware of when paying business taxes, including extension deadlines and tax filing deadlines, and answer many common questions that business owners have about paying business taxes.
Keep in mind that these dates may change as tax schedules adjust due to the coronavirus pandemic. It’s important to check back for the most updated tax deadlines and payment deadlines.
Filing Small Business Taxes
No one likes paying small business taxes, but it’s important to keep track of how much you owe and the dates relevant to your business entity to avoid paying hefty IRS fees at the end of the year.
We’ll detail the key dates you need to know below to ensure you have everything ready to go in time. That way, you’ll only have to worry about paying what you actually owe.
Feb. 1, 2021
If you’re required to make estimated tax payments and have not made all payments required by Jan. 15, 2021, you can opt to file your state and federal income tax return and pay all taxes by Feb. 1. Doing this will allow you to avoid paying any self-employment penalties. If you cannot meet this deadline, you’re required to pay your taxes in full (plus any penalties) by April 15, 2021 (the official tax due date in the United States).
If you have employees or contractors, you’re also required to issue Forms W-2 and 1099-NEC by this date. Specifically, for Form 1099-NEC, you’ll file Copy A with the IRS and give Copy B to the contractor.
Feb. 16, 2021
Businesses must release annual information statements for payments reported on the IRS forms below:
- Form 1099-B
- Form 1099-S
- Form 1099-MISC
March 1, 2021
Paper information returns for certain payments made by businesses in 2020 are due on this date. You may need to provide forms (such as 1099-MISC) for payments mentioned in the Feb. 1 deadline. Again, Copy A must go to the IRS, while Copy B goes to the recipient.
March 15, 2021
Partnerships are required to file Form 1065 for the 2020 calendar year. They must also provide a copy of Schedule K-1 — Partner’s Share of Current Year Income, Deductions, Credits, and Other Items — to every partner by this date. If you need a six-month extension, you’ll need to file Form 7004 by this date.
S corporations must file Form 1120-S for the 2020 calendar year and submit payment for any taxes owed. Each shareholder must receive a copy of their Schedule K-1, Shareholder’s Share of Current Year Income, Deductions, Credits, and Other Items. You must file Form 7004 requesting a six-month extension by this date if required. You’ll also need to provide what you expect to owe in taxes.
March 31, 2021
The electronic filings of the below forms are due:
You should have given the recipients a copy of these forms by Feb. 1.
April 15, 2021
Corporations (including C corporations) must file Form 1120 with their 2020 calendar year business tax return information by this date to pay their corporate taxes. Form 7004 requesting a six-month extension of time must be filed by this date if required.
Personal tax returns are due on this day. This is the last day taxes can be filed without filing for an extension of time. The first of four estimated tax installments for 2021 is also due on this date for individuals and corporations.
June 15, 2021
The second installment of four estimated tax installments for 2021 is due on this date for individuals and corporations.
Sept. 15, 2021
The third installment of four estimated tax installments for 2021 is due on this date for individuals and corporations.
Partnerships and S corporations that filed a six-month extension of time on their 2020 taxes must submit Form 1065 and Form 1120-S, respectively. Partners and shareholders will also need a copy of their final or amended Schedule K-1.
Oct. 15, 2021
Individuals who filed a six-month extension on their 2020 taxes must file Form 1040. Corporations should file Form 1120 only if they requested the same extension.
Dec. 15, 2021
The fourth installment of four estimated tax installments for 2021 is due on this date for corporations.
Estimated Tax Payments Calendar
Estimated tax payments must be made throughout the year by anyone who is self-employed or owns a business. These quarterly tax payments are due at the state and federal levels.
Estimated tax payments for the 2021 fiscal year are due on the below dates:
- April 15, 2021 — installment one is due (first quarter)
- June 15, 2021 — installment two is due (second quarter)
- Sept. 15, 2021 — installment three is due (third quarter)
- Dec. 15, 2021 — installment four is due (fourth quarter)
Reporting Quarterly Payroll Calendar
If you’re an employer with employees on your payroll, you’ll be responsible for withholding payroll taxes, such as Social Security and Medicare taxes. These employment taxes are held from your employees’ paychecks and paid quarterly. These taxes are also known as Federal Insurance Contributions Act (FICA) taxes.
While you must file your company’s FICA taxes each quarter, many businesses choose to deposit these taxes more regularly, adopting a weekly, biweekly, or monthly deposit schedule. This can be done electronically for federal deposits and online or through the mail (depending on the state you live in) for state deposits.
Here’s when your quarterly payroll taxes should be submitted on Form 941:
- Feb. 1: The fourth quarter installment of payroll withholding taxes for the 2020 tax year is due.
- April 30: The first quarter installment of payroll withholding taxes for the 2021 tax year is due.
- Aug. 2: The second quarter installment of payroll withholding taxes for the 2021 tax year is due.
- Nov. 1: The third quarter installment of payroll withholding taxes for the 2021 tax year is due.
When Can You File Business Taxes for 2021?
You can file your business taxes for 2020 starting in January 2021. However, you may not have all of the paperwork required to file at the very beginning of the year. All taxes are due by April 15, 2021, but it’s important to note the specific deadlines above for specific business entities.
Your 2021 taxes will be due in 2022 and, as of this writing, can be filed starting in January 2022.
How to File a Business Tax Extension
If you need to file an extension for your business taxes, you’ll need to submit Form 4868 or Form 7004 by your business entity’s deadline. Partnerships and S corporations must submit their business tax extension request by March 15, 2021, and all other corporations must submit this request by April 15, 2021.
It’s important to stay organized when filing taxes and business tax extensions. Using a high-quality accounting system can help you find all of the paperwork you need to supply your business income, expenses, profits, and losses when filing your taxes.
When Can You Expect a Tax Return?
When taxpayers and small business owners receive a federal tax return will depend on how they filed. If you filed online, you could expect your return to be processed within 21 business days of receipt. If you filed by mail, you could expect your return within six weeks.
Manage Your Tax Forms Easier and Accounting With Skynova
To limit the amount of business taxes you’ll pay in the United States or maximize your deductions, it’s important to have access to reliable accounting software. Skynova’s accounting software ensures accuracy and allows you to quickly run reports, so you can pull your earnings, expenses, credits, and vendor payments when you need them. Skynova also offers invoices for independent contractors, vendors, and more.
With COVID-19 changing the filing date deadlines during tax season, be sure to stay aware of updated tax deadlines by reviewing the official IRS tax calendar. You should also use Skynova’s accounting software to pull the reports you need to find your taxable income, profits, and losses so that you can meet your filing due dates.