March 15 deadline nears for S-Corporation tax returns

S-Corporations have a few more days until the deadline for filing a 2015 calendar year income tax return and paying any tax due. The deadline is March 15.

S-Corporations elect to pass corporate income, losses, deductions and credits through to their shareholders for federal tax purposes, according to the IRS. The shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This “flow-through” method allows S-Corporations to avoid double taxation on corporate income.

The corporation must submit Form 2553 Election by a Small Business Corporation – signed by all shareholders – to become an S-Corporation. The corporation may have no more than 100 shareholders and meet other requirements. If you are an S-Corporation, you may be liable for income tax, estimated tax, excise tax and employment taxes such as Social Security and Medicare taxes and income tax withholding.

Also by March 15, S-Corporations must provide each shareholder a copy of Schedule K-1, Shareholder’s Share of Income, Deduction, Credits, etc.

If you need more time, submit Form 7004 by March 15 for an automatic 6-month extension to file your return.