March 17 Business Filing Deadline is Approaching

The filing deadline for business returns is approaching.  This year, since March 15 falls on a Saturday, the filing deadline becomes the next business day, Monday, March 17.  Here are a few tips to help with meeting the demands of the deadline:

Business Type
Corporations and S-Corporations on a calendar tax year must file and pay by March 17.  This “Business” deadline does not apply to LLCs, Partnerships or Sole Proprietorships, which are due April 15.

Timely filed
Returns are timely filed if they are post-marked by March 17 or e-filed by midnight on March 17.

Perfection period
When an e-filed business return is rejected, there is a 10-day perfection period for correcting the return and getting it accepted.  The perfection period applies regardless of the date filed, due date, or extended due date, and it is never extended regardless of weekends or holidays.  So, if you e-file a business return on March 17 and it is rejected, you have until March 27 to get it either retransmitted (and subsequently accepted) or post-marked and in the mail.  If the e-file reject cannot be fixed, include a copy of your transmission report and acknowledgement with the mailed return for proof that you attempted to e-file by the March 17 deadline.  NOTE: For extensions (Forms 7004 and 8868), the perfection period is 5 days.

Ack delays
As the deadline approaches, there may be processing delays at IRS due to high volume.  Expect longer-than-normal IRS ACK turnaround times the last couple days before the deadline.  We advise getting everything transmitted well before midnight on the 17^th. 

Filing an extension
If the return is not ready to be filed, use Form 7004 to e-file (or mail) a request for automatic extension until September 15.  Extensions must be filed prior to midnight on March 17.  The extension to file does not also extend the payment deadline.  If payment is due, it must be paid by March 17 to avoid late-filing penalties.  The extension form can be generated in Drake Software by accessing the 7004 screen – type EXT or 7004 at the data entry forms menu.  To select the extension for e-file, go to the EF screen and check ‘Federal 7004 only’.

Making a payment
Payment can be made electronically by electronic funds withdrawal (EFT) when you e-file either the return or the extension.  Complete the PMT screen to choose the bank account for withdrawing funds, and indicate if the payment is for 1120, 7004 or 1120X (amended).  If the business doesn’t want to use EFT, it can go to www.eftps.gov and use the Electronic Federal Tax Payment System to make payment.

States
Due dates, payment options and extension requirements vary from state to state.  Access the state FAQ screen from the state forms menu in Drake data entry to learn more about each state’s due date, extension requirements and payment options.  You can also access state-specific information on our support website, http://support.drakesoftware.com.  The state’s own website is also a good resource for this information.  Note: Some states do support extension e-file; those supported will be listed (in Drake) in the State/city returns to e-file drop-down on the EF data entry screen.   Also, the State/city selection drop-down on the PMT data entry screen provides a list of states that support EFT payments.