| The first quarter of every year is known as tax | | | | March 16th, not six months down the road when |
| season for businesses and individuals alike. The | | | | the corporate tax return is finally filed. |
| first big tax return deadline is quickly approaching | | | | The economy is going through a slightly troubling |
| and corporate entities are notice to get there | | | | rough spot. Most corporations are feeling this |
| filings in or claim an extension. | | | | succinctly, particularly in the old cash flow |
| Corporate returns are due every year on March | | | | statement. What if the corporate entity owes |
| 15th. This year is a bit different. Since the 15th | | | | taxes but doesn't have sufficient funds on hand |
| falls on a Sunday, the deadline is automatically | | | | to make the payments? Well, you can wait till the |
| extended to the next business day. In this case, | | | | actual return is filed, but penalties and interest will |
| that means the filing deadline is Monday, March | | | | need to be paid at that time. For many |
| 15th for most businesses. To be honest, you | | | | businesses, the value of the extra time far |
| should probably already have your returns done | | | | exceeds the cost of any penalties and interest |
| by this point. | | | | payments. |
| Okay, what if you don't have your returns | | | | Every corporate entity has employees, which |
| prepared for the relevant corporate entity? As all | | | | means payroll must be paid. The IRS takes a |
| Americans know, there is a little golden tax filing | | | | very stern approach to payroll taxes. Whatever |
| known as an "extension." The IRS will give you an | | | | you do, make sure the payroll taxes are always |
| automatic six month extension if you file it in a | | | | paid first in any corporation. There is no better |
| timely manner. The proper form is the Form | | | | way to get the IRS on your case. When payroll |
| 7004. It must be filed by the original deadline for | | | | taxes are missed, the IRS will act quickly and |
| the tax return, in this case that is March 16th. | | | | harshly. If the only step is to immediately freeze |
| Importantly, the filing of an extension does not | | | | the corporate bank accounts, it should be |
| give you any relief when it comes to the actual | | | | considered a lucky break. It only gets worse from |
| payment of taxes. Put another way, any money | | | | there. No matter how bad business is, pay those |
| the corporation owes the IRS is due on or before | | | | payroll taxes. |