Your guide to the 2023 tax season filing and extension deadlines

While the tax filing and extension deadline calendar isn’t exactly the most exciting list of dates you’ll track this year, it might be the most important. Keeping up with your filing deadlines —  for both your tax returns and annual forms — protects your business from costly fees, penalties and in extreme cases, criminal prosecution.

If all this sounds overwhelming, consider taking a load off by outsourcing tax preparation. Otherwise, pull up your calendar and mark these dates. 

Here are the most common tax filing and extension deadlines every business owner should be aware of:

The federal income tax return deadline: April 18

Tuesday, April 18 is the federal tax filing deadline for most Americans. On this date, you’re required to file your personal tax return and (unless you’ve requested an alternative fiscal year) the return for your limited liability company or sole proprietorship. 

Due to severe weather earlier this year, residents in three states have been offered a tax filing extension for both state and federal taxes. Alabama, California and Georgia residents now have until May 15, 2023 to file. 

While you must file your federal tax return by April 18, your state taxes may be due later

Every state that requires income taxes, 41 states in total, is permitted to set its own state tax deadline. Most states follow the federal tax deadline of April 18, but some states have chosen their own deadline:

• Delaware – May 2
• Iowa – May 1
• Louisiana – May 15
• Virginia – May 1

The federal income tax return extension deadline: October 16th 

Any business or individual can file for an extension up until April 18. If your extension request is accepted, you have until October 16 to complete your tax return. 

While an extension does delay the deadline for filing your taxes, giving you six additional months to gather your documentation, it doesn’t delay the deadline for paying your due taxes. Any taxes not paid by April 18 can be subject to a penalty of 0.5% of the taxes owed, levied every month the taxes go unpaid. 

That’s why it’s crucial for small businesses to keep up with their quarterly taxes and avoid falling behind on payments, even if you need a bit more time for paperwork. 

The federal tax filing deadline for S corporations and partnerships is March 15

Federal tax filing deadlines depend on business structure and which form you’re submitting.  Business owners that run an S-corp or partnership are required to file their business tax return by March 15. 

While your personal income tax return, in which S-corp and partnership taxes are paid, is not due until April 18, business owners filing the S-corp or partnership’s return have less time to submit the required forms.

S-corps and partnerships can also file for an extension by this date, if needed. 

The federal tax filing deadline for C corporations is April 18

C-corps, like sole proprietorships and LLCs, are required to file taxes by April 18. This is also the deadline for these businesses to file a corporation tax return extension, if necessary.

The estimated quarterly tax payment deadlines are January 16 (for the last quarterly payment of 2022), April 18, June 15, September 15 and January 17, 2024

Estimated quarterly taxes are tax prepayments made to the IRS on a quarterly basis throughout the year. They’re required of both business owners and businesses that don’t have taxes automatically withheld. Any self-employed individual, freelancer, independent contractor or entrepreneur can be required to pay taxes quarterly. 

This tax payment, and the accompanying paperwork, is due in the month following each quarter-end. That’s why the final payment of 2022 is due in January of 2023. 

If you fail to meet your estimated quarterly tax payment deadline, or if you underpay your quarterly taxes, you may be subject to an underpayment or late penalty based on the amount of underpayment and how late the payment was submitted. 

It’s important to note that the penalty for failing to make estimated tax payments or underpaying your estimated tax can add up quickly, especially if you owe a significant amount of tax! To avoid the penalty, and the complicated paperwork, it’s important to make your estimated tax payments on time and in the correct amounts. 

Consult with a tax professional if you’re unsure of what you should be paying — or don’t have time to manage this crucial business task. 

For small businesses with employees or contractors, the W-2 and 1099-NEC filing deadline is January 31

Filing W-2s for your employees and 1099-NECs for your independent contractors is an important part of reporting the wages paid and taxes withheld for each of your workers. Keep in mind that employee misclassification is among the leading triggers for small business tax audits, so you want to get this right.

If you employed contractors in 2022, and paid them at least $600 during the year, you must submit a 1099-NEC form declaring their earnings throughout 2022. One copy should be submitted to the IRS by January 31, and a second copy should be provided to the contractor for their filing and records. 

If you had employees in 2022, you must submit a W-2 form declaring their earnings throughout 2022, the taxes you withheld, and what was paid to Social Security and Medicare taxes. 

Filing your W-2s and 1099-NECs on time and accurately ensures both your business and your employees have a smooth tax season. 

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage please contact us here.