March 15th Deadline

2016 tax season is here!! The 1099 and W-2 deadline has passed, so I hope you have your employees and contractors covered. Let me know if you haven't gotten those done yet and we can get them done.

What's next?! March 15th is the filing deadline for all calendar year Form 1120 or Form 1120S.

Form 1120-S or an S Corporation is a flow through entity. Generally no tax is due with this tax return but a K-1 will be used for a additional tax return. An S Corporation can be a great tool in minimizing your self-employment tax. The trick is making sure the tax savings can justify the administrative costs' of the additional tax return and payroll. If you are wondering if an S Corporation might be a good choice for you feel free to contact me.

Form 1120 is for your standard C Corporation entity. Usually most clients won't go the route of a C Corporation because of the double taxation. The C Coporation has its purposes, but unless you are certain this is the entity you want, I would steer clear. Discuss with me or another tax professional before choosing.

If you aren't ready for the March 15th deadline an extension is readily avilable by filing Form 7004. Important note when filing your 3/15 extension or any other: any tax due on the original filing date is still due on that date, regardless if you file an extension or not. Let me know if you have any additional questions with that.

Hope everyone has a smooth 3/15!

ELD