By sampay 
For most Americans, tax day comes once per year. That’s not the case for businesses though. If you own a business, you have to file tax forms on a regular basis. There are deadlines you must stay on top of from quarterly income taxes to paying payroll taxes. Below are the deadlines that small businesses need to worry about and when they will occur in 2023. If you’re looking for tax automation for your small business, consider working with a financial advisor.
Small Business Estimated Tax Deadlines
Everyone who makes money independently, from a business to a freelancer, needs to file estimated income taxes. These are commonly known as “quarterlies,” because you file them roughly every quarter.
The IRS requires this for several reasons. The main reason is to smooth out the agency’s income. Instead of collecting its money once per year, estimated taxes ensure that it has money coming in on a regular basis. Quarterly payments also make it more likely that any given business or individual will have money on hand. Many small businesses fail to properly set aside their tax money, so the IRS would have trouble collecting if it waited for a full year’s taxes all at once.
Quarterly tax payments are the estimated amount of income tax that you owe based on your income since your last estimated payment (typically the past three months). You can either make a complete calculation of all income, deductions and expenses to determine your correct current tax bracket or you can apply your past year’s tax bracket to the past quarter’s income; this is why it is called an “estimated” tax payment because the IRS allows back-of-the-envelope calculations.
In 2023, you must file quarterly taxes on the following dates:
First Quarter, January – March: Due April 18, 2023
Second Quarter, April – May: Due June 15, 2023
Third Quarter, June–August: Due Sept. 15, 2023
Fourth Quarter, September–December: Due Jan. 16, 2024
Small Business Income Tax Deadlines
Just like individuals, businesses must also file their income taxes each year. The deadlines for when you must file these taxes differ based on the nature of your business, but these are the deadlines by which you must either file your taxes or file for an extension:
Partnerships, LLCs and S Corporations Using A Calendar Year: Due March 15, 2023
C Corporations and Sole Proprietors Using A Calendar Year: Due April 18, 2023
The IRS has scheduled Tax Day for Tuesday, April 18, 2023 because Washington, DC, recognizes a local holiday known as Emancipation Day on Monday, April 17, 2023. Tax-exempt and political organizations must file their taxes on April 17, 2023, but they are not small businesses.
Note that these deadlines do not apply to corporations using a fiscal year system. If you use fiscal year accounting, then you must file your taxes by the 15th of the fourth month after the close of your fiscal year, adjusted for any holidays or weekends.
And remember, when it comes to the IRS filing deadlines two rules usually apply: First, if you submit electronically then it is considered on time as long as you get your forms in by midnight of your local time zone on the day it’s due. Second, if you submit your forms by hard copy then they are considered on time as long as they are postmarked by the due date.
Small Business Tax Form Deadlines
Running any business requires relatively frequent contact with the IRS, as you manage to report for both your and your employees’ money. We will not go into the complete list of monthly payroll tax filings, for that level of granularity sees the IRS’ complete tax calendar. However, the important unique deadlines you need to know are:
Employees Must Receive W-2 Forms: Jan. 31, 2023
Independent Contractors Must Receive 1099 Forms: Jan. 31, 2023
Switch Business Election to S-Corporation for 2023 Taxes: March 15, 2023
File Business Taxes After An Extension, Partnerships, LLCs and S Corporations Using A Calendar Year: Sept. 15, 2023
File Business Taxes After An Extension, C Corporations and Sole Proprietors Using A Calendar Year: Oct. 16, 2023
There are a few critical things to remember. First, the deadline for employees and contractors to receive their tax paperwork is different than most other IRS deadlines. In that case, Jan. 31 is the date by which they must have the documents in hand, either electronically or in hard copy.
Second, while a tax extension gives you six extra months to file your paperwork, you still have to make an estimated tax payment in March or April (depending on the nature of your company). If your estimated payment is significantly less than the taxes that you end up owing, the IRS will charge you an underpayment penalty.
Small Business Payroll Tax Deadlines
Every organization with employees must also handle payroll tax filing and payments. You are required to pay your employees’ payroll taxes and income taxes withholding regularly, typically on either a monthly or biweekly basis depending on the nature of your business.
In addition to making these payments, you must also regularly file a payroll tax form with the IRS. While some very small businesses can do this by filing Form 944 with their annual returns, most businesses will handle payroll tax filings by filing Form 941 on a quarterly basis. If this paperwork shows any additional taxes owed beyond the deposits you have already made, those payments will be due one month after you file.
Those deadlines are:
First Quarter, January – March: Filing Due March 31, 2023; Payment Due April 30, 2023
Second Quarter, April–June: Filing Due June 30, 2023; Payment Due July 31, 2023
Third Quarter, July – September: Filing Due Sept. 30, 2023; Payment Due October 31, 2023
Fourth Quarter, October – December: Filing Due Dec. 31, 2023; Payment Due Jan. 31, 2024
The Bottom Line
Running a small business involves frequent contact with the IRS. From payroll taxes to estimated quarterlies, the tax deadlines for your small business are important to keep up with so that you don’t end up incurring penalties or fees. In fact, you could even be forced to disband your legal entity for your business if you don’t meet certain deadlines. It may be best to hire a professional to manage all of these deadlines for you if it’s too much to focus on.
Tips for Tax Planning
Good financial advice isn’t just for individuals. Financial advisors can also help you if you own a business and need better tax planning or management. If you don’t have a financial advisor, finding one doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Small businesses have their own set of credits, deductions, expenses and more. Make sure that you claim everything that you’re entitled to, so you can keep those taxes as low as possible.
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