On Friday, Liz and I went to the new Redlands Public Market here in town to grab dinner and drinks. We happened to talk about business and taxes. He was shocked that his new S-Corp, which he had started, would require the tax returns to be done in two weeks.

We’ve encountered numerous business owners who, after the exhilaration of establishing their S-Corporations or Partnerships, overlook a critical detail: the March 15th tax filing deadline. The realization often comes too late, accompanied by substantial penalties that could have been avoided. This article serves as a timely reminder to ensure you’re prepared for the upcoming deadline.​

Tick-tock. The tax clock is winding down, and if you’re at the helm of an S-Corporation or Partnership, the horizon isn’t as distant as it seems. March 17, 2025, looms large—a date that could either pass like a gentle breeze or hit like a tempest, depending on your readiness.​

The Unforgiving Calendar

In the realm of taxation, ignorance isn’t bliss—it’s costly. The IRS mandates that S-Corporations file Form 1120-S and Partnerships submit Form 1065 by March 15 each year. However, 2025 presents a slight deviation: March 15 falls on a Saturday, extending your deadline to Monday, March 17. But don’t let that brief respite lull you into complacency.​

California’s Parallel Tracks

For those navigating the Californian waters, the state aligns its deadlines with the federal schedule. S-Corporations must file Form 100S, while Partnerships and LLCs taxed as Partnerships are required to file Form 565 or Form 568, respectively, all due by March 17, 2025. It’s a synchronized dance, but miss a step, and the penalties can be severe.​

The Avalanche of Consequences

Consider this: for every month—or fraction thereof—that your return is late, the IRS imposes a penalty of $220 per shareholder or partner, up to 12 months. A three-member S-Corp delaying its filing by three months faces a penalty of $1,980. In California, the stakes are equally high, with penalties reaching up to 25% of the total tax due. These aren’t just numbers; they’re potential drains on your hard-earned profits.​

Proactive Measures: Your Lifeline

  • Early Preparation: Begin organizing your financial records now. Engage with your accountant or tax professional to ensure all documents are in order well before the deadline.​
  • Seek Extensions Wisely: If you foresee delays, file Form 7004 to secure a six-month extension. Remember, this extends your filing date, not your payment due. Any owed taxes must still be paid by March 17 to avoid interest and penalties.​
  • Stay Informed: Tax laws aren’t static. Regularly consult with professionals or refer to official IRS and California Franchise Tax Board resources to stay abreast of any changes.​

The Bottom Line

Time waits for no one, especially in taxation. The March 17 deadline is a siren call to action. Heed it, and you sail smoothly into the new fiscal year. Ignore it, and you risk the turbulent waters of penalties and interest. The choice is yours, but remember: in the realm of taxes, fortune favors the prepared.​

For personalized assistance or further inquiries, contact our office at 909-570-1103 or visit CallTaxEA.com to schedule an appointment.