April 15 is called Tax Day. But tax days roll around periodically throughout the year, and there’s one coming up Sept. 15 that affects self-employed and several other categories of taxpayers. The regular deadline is for estimated tax payments as well as final deadlines for taxpayers who were granted 2014 IRS extensions for any or all of these three tax returns:
- trust income tax returns
- partnership tax returns
- corporate tax returns
The third-quarter 2015 estimated tax due is exactly as it appears, estimating how much you think you owe the government, and paying it, even if it’s more than the government is owed and that will ultimately receive a refund. This is in keeping with the old gambling-related saying that “The house always wins.” In this case, however, the only gambling going on is if taxpayers gamble that if they don’t file, or don’t pay enough, that the IRS – the house - won’t notice. That’s an approach not recommended. Here’s what the IRS says about who owes estimated taxes:
“Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough,”
Failure to comply, accurately, will result in penalties to pay. The IRS tends to be equally serious about tax returns for trust, partnership, and corporate tax returns. If you fall into this category you really should by now have at least started, if not completed, your returns. But these can sometimes be challenging deadlines to remember, coming as they do in the middle of a month well before the end of the calendar year. Assumptions that they aren’t due until Dec. 31 are, unfortunately, mistaken. Therefore, if you’re reading this and feeling your heart rate increase, your throat constrict, and a sudden urge to locate the nearest restroom because you’ve just realized that time is short, here are the forms for the various tax categories:
- Trust income tax returns: Form 1041
- Partnership tax returns: Form 1065
- Corporate tax returns: Forms 1120, 1120S
If you’re wondering if any of these apply to you, don’t wonder. See your accountant or your tax advisor. If you’re affected and they haven’t called it to your attention it’s fair to ask them why not.
Next time: more upcoming tax deadlines , who’s affected, and what they’ll need to do.
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