Tax Return!
Last April, I watched a business owner submit his taxes online at the last minute after preparing them with his CPA for weeks. They had checked everything thoroughly a big change from the prior year, when a missed write-off and a late payment led to an IRS notice and extra costs. Getting taxes right can mean keeping your refund or paying fines.
Why is this important for businesses? Each dollar saved on taxes can add up, letting you hire people or boost your credit. With tax rules always changing, mistakes are easy to make.
What’s a Tax Return, and Who Needs to File?
A tax return is how you tell the IRS about your income, what you can deduct, and the taxes you owe or are owed. For companies, what you file hinges on how your business is set up:
C Corporations: File Form 1120. Income is taxed directly; filings are due April 15 for those using the calendar year.
S Corporations: File Form 1120-S. Profits and losses affect the shareholder’s tax filings; filings are due March 15.
Partnerships/LLCs: File Form 1065 or Schedule C (if it’s a single-member LLC). The tax deadline for partnerships is March 15.
Sole Proprietors: File Schedule C along with your personal Form 1040; usually due April 15.
Some industries and foreign-owned entities might have extra rules. Always check what applies to your type of business.
From Experience: What a Business Tax Return Looks Like
Consider a consulting business that makes $1.6 million and has employees and contractors. For its 2024 taxes (filed in 2025), here’s how it goes:
Gathering Info: Collect income records, receipts, payroll data, depreciation, and any changes from prior years.
Accounting Review: Check entries, verify what’s owed, and match bank records.
Tax Software or CPA: Enter data into tax software, which checks for errors and looks for possible deductions or credits (like R&D or employee retention).
Review and File: Review, sign, and submit all forms electronically.
Record Keeping: Store copies securely for seven years.
Important Dates: Deadlines and Extensions
Here are the main federal deadlines for 2025, keeping in mind they shift for weekends and holidays:
Partnerships/S corps: March 15, 2025 (Forms 1065 and 1120-S).
C corps/Sole props: April 15, 2025 (Form 1120 and Schedule C).
Extensions: File Form 7004 by the regular deadline to get extra time. Pay what you think you’ll owe.
Quarterly estimated payments: C corps pay on April 15, June 16, September 15, and December 15, 2025. S corps and sole props might also owe if they expect to owe $1,000 or more.
Forms 1099 and W-2 are usually due by January 31, 2025.
What’s new in 2025: What to Watch
This year, businesses are dealing with:
Permanent TCJA changes: Limits on SALT deductions and changes to IRS reporting on foreign investments.
AICPA Advice: The AICPA wants the IRS to update estate and trust forms and make it easier to report foreign assets and charitable deductions.
More E-filing: Many businesses are required to file taxes online, especially if they file more than 10 returns. The IRS is watching electronic records more closely.
Tips: Audits and Saving Money
Start Early: Try to finish by February.
Use Tech and Double-Check: Use accounting software and review everything.
Keep Good Records: Keep documents for payroll, rent, R&D, and equipment.
Look for Credits: Credits for family leave, R&D, and energy can lower what you owe.
Get a Pro: Use a CPA, mainly if you file in multiple states, internationally, or have complex filings.
Respond to IRS letters Fast: Doing so can stop penalties.
Common Mistakes and How to Avoid Them
Filing late: Causes penalties and lost refund chances.
Missing extensions: Only the filing deadline is moved.
Skipping estimated taxes: Business owners often pay too little.
Incorrect setup: Mixing up LLCs, partnerships, or pass-throughs can cause problems.
Falling for scams: Fake tax preparers pop up during tax season. Only trust verified pros or IRS.gov.
Where This Info Comes From
The info here comes from IRS rules and data from the AICPA, TurboTax, and business news sources. I’ve worked with startups and big companies, and my advice mixes standard practices with money-saving tips.
In Conclusion: Taxes as an Advantage
Good tax planning helps you build trust with lenders, save money, and set up your business for growth.
What’s Next?
Does your business use tax automation, or have you had audit problems?
Share your story and get advice from a tax advisor for planning and savings.
