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Remember: stuff is due today!

March 15, 2010

Today is March 15. That means tax returns, or at least extensions, are due today for calendar year corporations. A few things to keep in mind:

- If you extend your return filing date to September 15, you get another six months to make your 2009 pension and profit sharing contributions.

- If you owe money with your tax return, you should have already arranged to pay it by EFTPS. If you haven't paid, get it in right now. You might be able to pay today at a bank using a Form 8109 coupon, if you have one, and if you can find a bank that still takes federal payments.

- If you owe but can't pay yet, you still should extend. The penalty for late payment is 1/2% of the amount due per month, plus interest, but the late filing penalty is 5% of the amount due per month plus interest.

- Even though S corporation returns typically have no tax due, you still need to file or extend them today. The tax law imposes a penalty of $89 per K-1, per month, for filing an S corporation return after the due date, including any extension. That means as S corporation with ten shareholders that files one day late has an $890 late filing penalties. That penalty goes up to $195 next year.

- If you can e-file your extension, do so. It's safer and it saves you a trip to the post office. If you must send your return or extension the old-fashioned way, be sure you use "Certified Mail, Return Receipt Requested," and hang on to that postmarked receipt like a family heirloom.