Just when you think you can finally enjoy the long-awaited summer break, there’s one thing that puts a damper on your sunny plans: tax deadlines. We know. It’s not the most exciting topic, but it’s an important one—especially if you’ve been busy setting up a business.
No matter how ready or organized you are, there are bound to be tax deadlines creeping up on you. And let’s face it—it doesn’t feel great when a tax deadline sneaks up and catches you off guard. The good news is that 2023 will soon be here, presenting us with a fresh slate of opportunities to get ahead of the game and better manage our finances.
Let’s walk through the essential information you need to know about business tax deadlines for 2023. Here’s your guide to everything from due dates, forms, filing procedures, and penalties—all the way to those moments of sheer elation when everything is completed and filed in a timely manner!
1. Understanding Federal Taxes for Businesses
If you’re a business owner, taxes are one of the most important deadlines you’ll need to meet. Planning ahead and understanding when your federal tax obligations are due will help ensure you complete them on time, without any last-minute rush.
Federal tax obligations generally include filing income taxes (Form 1120) and estimated taxes (Form 1040-ES). The due date for Form 1120 is April 15th of the following year, while estimated taxes must be paid quarterly throughout the year. Depending on your business type, you may also need to file additional forms such as payroll tax returns (Form 941) at the end of each quarter in order to remain compliant with federal regulations.
To make sure you never miss a deadline, it’s always a good idea to set up reminders for yourself or use an online calendar to track all of your business tax obligations. Failing to meet any of these deadlines could result in an expensive penalty from the IRS. Be sure to plan ahead and get ready for 2023!
2. Keeping Track of Key Business Tax Deadlines
Navigating the world of business taxes can be intimidating, but understanding the key deadlines that come up each year is a critical part of running a successful business. Making sure you’re aware of these key dates not only helps you stay on top of filing and payment deadlines but also tracks important data points related to tax code changes and credits that can make or break your business’s success in 2023.
Let’s look at some of the main dates to be aware of:
- April 15th: This is the deadline for filing taxes for any sole proprietorships or partnerships. It’s also the deadline for both any estimated payments you need to make and prior year returns for corporations and individuals.
- June 15th: Any estimated payments needing to be made are due by this date for corporations, partnerships, individuals, and trusts.
- October 15th: A final deadline for any tax returns that were extended from April 15th as well as previous year returns if needed by corporations, partnerships, individuals, or trusts.
Pay special attention to these key dates in order to avoid penalties and ensure accuracy when it comes to your business taxes in 2023.
3. What to Do if You Miss a Tax Deadline
If you find yourself in a situation where you have missed a business tax deadline, don’t panic. There are many steps you can take to correct the situation and avoid any penalties.
The first thing to do is to file an amended return (Form 1040X). This will ensure that you are on the right track and that all of the information on your return is accurate. You’ll also want to pay any taxes owed in order to avoid having penalties or interest accrue. You may also want to consider filing for an extension if you need more time to complete and file your taxes.
Once you’ve filed the amended return, it’s important to keep a close watch on your mail for any notices from the IRS regarding your taxes. If you receive any, it’s best to contact the IRS promptly so that they can explain what is needed from you. They may require additional documents or ask questions about certain items on your return; in either case, dealing with this quickly will help reduce potential penalties or interest charges due.
The IRS does offer some relief for taxpayers who make mistakes or accidentally miss deadlines, so don’t let yourself get too overwhelmed if this happens—there are solutions available to help ensure that everything is taken care of correctly and quickly so that you can stay compliant and avoid further penalties or interest charges.
4. Managing Your Financials for Business Taxes
It’s a fact that managing your financials is key when it comes to filing business taxes. But what do you need to do? The answer is you need to get organized.
Managing your financials from the start is essential, so you’re ready for tax season every year. Especially when 2023 is just around the corner, getting ready for taxes now can save you a lot of headaches—and money—down the line.
Gather Your Documents
First off, make sure you’ve got all the proper paperwork for the past 12 months including account statements, business and personal tax documents, receipts and other invoices, canceled checks, and any other documents related to your income and expenses.
Review Depreciation Schedules
Also, make sure to review depreciation schedules if you have any fixed assets that have depreciated in value.
Software Advice
And lastly, invest in software that helps with tracking income and expenses like FreshBooks or QuickBooks Online (QBO). These programs are designed specifically for businesses and can make filing taxes much easier by being able to generate reports such as profit and loss statements quickly.
5. When and How to File Quarterly and Yearly Business Taxes
It’s easy to forget about business taxes, but when 2023 rolls around, you’ll want to be prepared. You’ll need to file your quarterly and yearly business taxes, but when and how?
Quarterly Taxes
The deadline for filing quarterly taxes—and paying them—is the 15th day of the month after the taxable quarter has ended. For example, if you’re filing taxes between October and December 2020, you need to make sure they’re filed by January 15th, 2021. Depending on the nature of your business, you may also need to pay estimated taxes three times a year in addition to quarterly tax returns.
Yearly Taxes
Businesses with employees must file a year-end federal income tax return (Form 941) by January 31st of the following year for taxes withheld from employee paychecks. If you don’t have employees, your quarterly business income tax return will generally serve as your yearly return as well. Depending on the type of business you have, there may be other year-end filings that are due in addition to this one.
When it comes time to file these different deadlines, make sure you have all necessary documents in order: invoices, receipts, and other records that detail your earnings throughout the previous year—after all, it isn’t just about what goes out but also what comes in. Do not overlook any necessary deductions either; accurate record-keeping can save you money!
6. Making the Most of Deductions and Credits in 2023
We all want to save money, and when it comes to business taxes, the more deductions and credits you can claim, the better off you’ll be in 2023. There are a lot of opportunities for deductions and credits that you may be able to take advantage of depending on the type of business you have.
Let’s look at some of the most popular deductions and credits:
Home Office Deduction
If your business operates out of your home, or even if you just have an office or workspace in your home, you may be able to take a deduction. This is one of the most popular deductions since many businesses are now operating with their staff working remotely.
Research & Development Tax Credit
The Research & Development Tax Credit is perfect for businesses that produce new or improved products or services using technology, engineering, or science. And if your research and development efforts lead to increased productivity, this can also help your business qualify for this credit.
Employee Retention Tax Credit
The Employee Retention Tax Credit allows businesses to claim up to 50% of certain expenses associated with keeping their employees on payroll during 2020 and 2021, including wages paid and certain health plan expenses. To qualify for this credit, there must be a decline in gross receipts due to COVID-19.
Making use of available deductions and credits is an important part of any tax strategy — after all, who doesn’t want to keep more money in their pocket? With the right advice from a registered accountant or tax professional, you can ensure that you make the most out of these tax savings opportunities before 2023 ends.
Conclusion
As 2023 quickly approaches, businesses of all sizes should begin to make preparations for the array of tax filing obligations that must be fulfilled. While some deadlines have already passed, there are still several deadlines to comply with beyond the New Year.
For the best chance of success, businesses should establish timely filing patterns and maintain excellent record-keeping practices throughout the year. This combination of practices should ensure that taxes are paid and accounted for accurately and in full. Staying aware of looming deadlines and implementing the necessary measures to meet them is the key to successful and stress-free tax filing.
