Tax season is an important time for small business owners in the U.S., and knowing the right deadlines can help you avoid penalties and stay compliant. Whether you're a sole proprietor or a corporation, filing on time is crucial. In this guide, we’ll walk through the key dates for tax filing in 2025 and offer tips to ensure you stay ahead of deadlines.
When Does the IRS Accept Returns?
For most small businesses, the IRS begins accepting returns on January 15, 2025. This marks the official start of tax season, and the IRS will begin processing returns and issuing refunds. Make sure to wait until then to file, as the IRS won’t process returns submitted before that date.
When Are Business Taxes Due?
The deadline for filing business taxes varies depending on the structure of your business.
- Sole Proprietors: If you file as a sole proprietor, your taxes are due on April 15, 2025, the same as individual tax returns. Your business income is reported on Form 1040, along with Schedule C.
- C Corporations: If your business is a C corporation, your tax return is also due on April 15, 2025, unless you have a fiscal year different from the calendar year.
- S Corporations and Partnerships: These entities must file their returns earlier, by March 17, 2025. S corporations file Form 1120-S, and partnerships file Form 1065. Note that these entities don’t pay taxes on income directly; the income passes through to shareholders or partners, who report it on their personal returns.
When April 15 falls on a weekend or holiday, the filing deadline shifts to the next business day. For example, in 2025, April 15 falls on a Monday, so taxes are due on that day.
For electronic filing, returns must be submitted by midnight in your timezone on the due date. For paper filing, the return must be postmarked by the due date, and it’s important to use the correct postage and address. Returns with insufficient postage or incorrect addresses are not considered filed on time.
Additionally, most businesses must make quarterly estimated tax payments. For the 2024 tax year, the last quarterly payment is due on January 15, 2025. For the 2025 tax year, quarterly estimated tax payments are due on the following dates:
- January 1 to March 31, 2025: Due April 15, 2025
- April 1 to May 31, 2025: Due June 16, 2025
- June 1 to August 31, 2025: Due September 15, 2025
- September 1 to December 31, 2025: Due January 15, 2026
If your business operates on a fiscal year, these dates may differ, and you’ll need to make estimated payments according to your specific year-end schedule.
What Are the Consequences of Filing Taxes Late?
Filing taxes late can lead to penalties and interest charges. If you miss the filing deadline, the IRS imposes a failure-to-file penalty of 5% per month on any unpaid taxes. Additionally, if you don’t pay your taxes on time, you could face a monthly failure-to-pay penalty of 0.5%. Interest on any unpaid tax also accrues daily at the federal short-term rate plus 3%.
Late filing can also impact your ability to receive a refund promptly, and if you’re due a refund, the longer you wait, the longer it will take to receive it. To avoid these issues, filing on time or requesting an extension if necessary is essential.
What Are the Benefits of Filing Early?
Filing your taxes early has several advantages:
- Faster Refunds: If you’re owed a refund, filing early can mean you get it faster. Taxpayers who file electronically and opt for direct deposit typically receive their refunds in under 21 days.
- Time for Tax Planning: Filing early gives you time to evaluate your tax situation and plan ahead. If you owe taxes, you can begin saving early or adjust your business strategy.
- Less Stress: Avoid the last-minute rush by filing early. This reduces stress and ensures that you have ample time to correct any issues.
- Avoiding Mistakes: Early filing allows you time to double-check your information, reducing the likelihood of errors that can delay processing or result in penalties. You can even claim deductions without any stress.
Tax Extensions
If you can’t meet the filing deadline, you can apply for a tax extension. This will give you an additional six months, moving your filing deadline to October 15, 2025. However, keep in mind that an extension only gives you more time to file, not to pay your taxes.
You’ll still need to estimate your tax liability and pay by the original deadline to avoid penalties. To apply for an extension, you’ll need to file Form 7004 by the due date. State tax deadlines may vary, so be sure to check local requirements.
Form 1099 Deadline
If your business works with independent contractors, you’ll need to file Form 1099 for anyone you’ve paid over $600 during the year. The deadline for sending these forms to both the IRS and your contractors is January 31, 2025.
The Form 1099 deadline applies to payments made to independent contractors, freelancers, or vendors. Make sure to get your Form 1099s out to your contractors on time because a failure to file can lead to penalties.
W-2 Filing Deadline
If your business has employees, you must file Form W-2 by January 31, 2025. This form reports wages, tips, other compensation, and tax withholding for the year. Just like the 1099, you must send a copy to the IRS and your employees by this deadline.
Missing the W-2 filing deadline could result in penalties, which can get more expensive the longer you delay. So, it’s crucial to have everything ready ahead of time to avoid these issues.
Final Thoughts
Filing taxes isn’t as spooky when you’re prepared. Knowing the deadlines is just one step in being prepared for tax season. When it comes to filing those taxes, let Receiptor AI help you.
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