What does the month of March mean to you? For some, it’s St. Patrick’s Day or spring break. But if you’re a small business owner, you’ll need to know the following 2019 March tax deadlines. And April? Don’t be “fooled.” It’s all about meeting your IRS obligations, filing for an extension or setting up an installment plan.
If you’re applying for a small business loan, it’s particularly important to hit all of those deadlines OR file for an extension and show proof of that filing.
Below are the dates you need to know and the forms* that are typically requested when applying for a small business loan.
March 15, 2019 is the IRS filing deadline for the following:
1120S
Use this form to report the income, gains, losses, deductions, credits, etc., of a domestic corporation or other entity for any tax year covered by an election to be an S corporation. Find the form on the IRS website here.
1065
Partnerships file an information return to report their income, gains, losses, deductions, credits, etc. A partnership does not pay tax on its income but “passes through” any profits or losses to its partners. Partners must include partnership items on their tax or information returns. Access the form here.
Filing for an Automatic Extension
If you’re applying for a loan and cannot file on time, use Form 7004 to request an automatic extension of time to file certain business income tax, information, and other returns. This form extends filing to September 15, 2019. It’s applicable for the two forms above, 1120S and 1065.
April 15, 2019 is the IRS filing deadline for the following:
1040
Form 1040 is used by U.S. taxpayers to file an annual income tax return. For Tax Year 2018, you will no longer use Form 1040-A or Form 1040-EZ, but instead will use the redesigned Form 1040. Many people will only need to file Form 1040 and no schedules. Form 1040 can be found on the IRS website here.
However, if your return is more complicated (for example you claim certain deductions or credits or owe additional taxes) you will need to complete one or more of the new Form 1040 Schedules. (There are six schedules, explanations can be found here.)
Visit the IRS website here for a general guide to what Schedule(s) you will need to file, based on your circumstances. See the instructions for the Schedules for more information.
1120
Domestic corporations use this form to report their income, gains, losses, deductions, credits and figure their income tax liability. Form 1120 can be found on the IRS website here.
4868
A U.S. citizen or resident files this form to request an automatic extension of time to file a U.S. individual income tax return. Find this form here.
How to Request a Monthly Installment Plan
If you cannot pay the full amount you owe, use Form 9465 to request a monthly installment plan if you cannot pay the full amount you owe shown on your tax return (or on a notice sent to you by the IRS).
Business Filing Tax Tips When Applying for a Small Business Loan
The SmartBiz Loans team has compiled tax tips for when you apply for a small business loan through SmartBiz. If you have questions about taxes and your application, please reach out to your SmartBiz Relationship Manager.
- Prepay taxes if self-employed.
- If underpaying, file extensions on time and pay estimated taxes owed to avoid or reduce additional tax fees.
- Obtain E-File Activity reports to confirm taxes have been filed.
- If you cannot satisfy the full amount owed, a 9465 installment agreement should be filed as soon as possible to avoid further late fees.
- After filing, keep clean PDF copies of the returns neatly organized in a safe place for quick access when applying for loans.
- Create an account on IRS.gov to check balances of past taxes.
Self-File or Hire a Professional?
Should you go solo or work with a professional to file your taxes? There are many factors to consider including the complexity of your tax situation, the time required to gather documents and the cost. Read this article from the SmartBiz Small Business Blog for more information and insight from real small business owners: Small Business Taxes: Self-File or Use a Professional?
Small Business Tax Prep Checklist
Whether you choose to self-file or hire a professional, the H&R Block blog has a list of the information you’ll need to prepare your taxes:
Income
- Gross receipts from sales or services
- Sales records (for accrual-based taxpayers)
- Returns and allowances
- Business checking/savings account interest (1099-INT or statement)
- Other income
Cost of Goods Sold (if applicable)
- Inventory
- Beginning inventory total dollar amount
- Inventory purchases
- Ending inventory total dollar amount
- Items removed for personal purposes
- Materials & Supplies
Expenses
- Advertising
- Phones (landline, fax or cell phones related to business)
- Computer & internet expenses
- Transportation and travel expenses
- Local transportation (Mileage log or receipts for public transportation, parking, and tolls)
- Travel away from home (Airfare or mileage/actual expense if drove, hotel, meals, taxi, internet connection, tips, etc.)
- Commissions paid to subcontractors (File Form 1099-MISC and 1096 as necessary)
- Depreciation
- Business insurance
- Interest expense
- Professional fees (Lawyers, accountants, and consultants)
- Office supplies
- Rent expense
- Business-use vehicle lease expense
- Office-in-home (Detailed information here: How to Take the Home Office Tax Deduction)
- Wages paid to employees
- Other expenses
Ways to Save – What Works in 2019
Jayson Mullin, a partner at Top Tax Defenders, a tax resolution company with over 30 years of experience working with the IRS has contributed a helpful article to the SmartBiz Biz Small Business Blog. He covers ways you can save on your taxes in a comprehensive article here: Small Business Tax Strategies.
*This information is provided for educational purposes only. Hiring a tax professional is the best way to manage and understand all your obligations, especially when there are changes in legal requirements.
