Welcome to Tax Tuesday September 10, 2024

Hi Reader

September 15th Deadline is Here for S-Corps and Partnerships!​
The clock is ticking for businesses that filed for an extension! If you operate an S-corporation or partnership and requested an extension back in March, the final deadline to file your tax return is September 15th—just a few days away.

Penalties for Missing the September 15th Deadline​
Missing this deadline can result in significant penalties. Here’s what you could face:

• Failure-to-File Penalty: For S-corporations and partnerships, the IRS imposes a penalty of $220 per month per shareholder or partner for every month (or part of a month) the return is late. For example, a 5-partner partnership that files three months late could face penalties of up to $3,300!
• Interest Charges: In addition to penalties, interest accumulates on any unpaid tax from the original due date (March 15th) until the taxes are paid in full. Interest is compounded daily, so the sooner you act, the better.

Don’t Forget About the Individual Extension Deadline​
For individuals who filed for an extension on their personal taxes, your deadline is coming up next month on October 15th. Now is the perfect time to gather your documents, get organized, and avoid the last-minute rush.

Penalties for Missing the October 15th Deadline​
If you miss this deadline, you could be hit with:

• Failure-to-File Penalty: This penalty is typically 5% of the unpaid taxes for each month (or part of a month) that your return is late, up to a maximum of 25%. So if you owe $10,000, you could be facing a penalty of $500 for each month you’re late.
• Failure-to-Pay Penalty: If you filed your return but didn’t pay your full tax bill, there’s also a penalty of 0.5% of the unpaid amount for each month the tax goes unpaid, maxing out at 25%.
• Interest on Unpaid Taxes: Just like with business returns, interest continues to accrue daily on any unpaid taxes until they are settled.

Need Help?​
If you need assistance meeting these deadlines or have questions about penalties and interest, the Philly Tax Team is here to help. We specialize in making the process smooth so you can stay compliant and avoid unnecessary costs.

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Have an outstanding day!

Camari

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P.S. Know someone who could benefit from these timely tax tips? Share the knowledge! Send them to TaxTuesdayInsider.com to sign up and stay on top of important tax deadlines, tips, and more!

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