Here’s a breakdown of this system for corporations:
- Annual Tax Return (Form 1120): Every corporation must file an annual tax return, typically Form 1120, by a specific deadline. This deadline is usually the 15th day of the fourth month following the close of the corporation’s tax year.
- Extensions:
- Corporations can request an additional six-month extension to file their tax return.
- However, filing an extension doesn’t postpone the actual tax payment due date. Estimated taxes may still be required throughout the year.
- Penalties for Late Filing:
- Failure to file a return or file late can result in penalties.
- These penalties can be significant and accrue over time.
It’s important to note:
- The self-assessment system relies heavily on taxpayers’ honesty and compliance.
- The IRS conducts audits to verify the accuracy of tax returns and can impose stricter penalties if discrepancies are found.
- There are also additional penalties for late filing of specific information returns that accompany the main tax return.
Additional Considerations:
- This system can be complex, and many corporations seek the help of tax professionals to ensure accurate filing and compliance.
- The tax code itself can be intricate, and staying informed about changes and updates is crucial.
