Navigating the 2023 Tax Season:  A Colorful and Comprehensive Calendar for Startups

The unavoidable cycle of taxes is as perennial as the seasons.  However, with a dash of color and a well-organized calendar, navigating the fiscal year need not be a monotonous task.  Thus, we present to you the vibrant 2023 Tax Deadline Calendar, specifically tailored for startups—C-Corps, Partnerships, and S-Corps—to simplify their tax obligations.

Starting with the frosty month of January, January 31 serves as the first deadline, mandating payments to employees and independent contractors.  Remember to issue a range of tax forms like the 1099-NEC, 1099-MISC, 1099-K, W-2, and W-3.  Subsequently, February 1 calls for startups to consider the opt-out deadline for Federal and State returns extensions.  Considering the weighty $25,000 penalty for missing Form 5472 foreign investment information, recommends considering extensions.

As we move further into February and then into March, various significant dates stand out.  February 22 requires the submission of documents for the Partnership March deadline.  Close on its heels, February 28 insists on paper filings due for forms like the 1099 and 1099-DIV.  The dawn of March introduces the Delaware Franchise Annual Report & Tax due on the first day, calculated based on shares issued and year-end assets.

As the winds of March continue, we reach March 15, where attention must be focused on S-Corp and Partnership extensions.  Forms like 1065, 8805, 1120, and 1042s must be diligently submitted.  As the IRS imposes monthly per-partner penalties for lateness, ensuring timely filing is vital.

Interestingly, March 15 also earmarks the cut-off for C-Corp and S-Corp Elections, which are best filed within 75 days of the tax year’s commencement.  This is particularly beneficial for foreign-owned LLC members opting to be taxed as a C-Corp, while for US C-Corp shareholders, potential tax savings are achievable as an S-Corp.  Moving on, March 24 serves as the deadline for financial document submission to avert penalties if taxes are owed.  Wrapping up March, the 31st marks the eFiling deadline for a majority of payout information returns, encompassing forms like 1097, 1098, 1099s (excluding NEC), 3921, 3922, and W-2G.

The freshness of April brings additional deadlines to the fore.  The window for filing Federal & State returns extensions stays open until April 17 upon request.  Following close behind, April 18 marks Tax Day and signals the extension due date for forms 1120 (C-Corp) and 1040 (Single Owner LLC, & Individual).  This date also rings in the due date for Q1 Estimated Tax Payments, mandatory for corporations experiencing profitability for the first time.

As the warmth of summer approaches, May 31 signals the due date for the BE-12 Foreign Investment Form.  This obligation applies to companies with 10% or more foreign ownership.  Penalties for non-compliance can be significant, ranging from $2,500 to $10,000, and even potential criminal charges.  June also presents the LLC DE Franchise Annual Fee due on June 1 and Q2 Estimated Tax Payments on June 15.

The onset of fall brings another wave of tax obligations.  The deadline for extended returns signup is August 25.  On September 15, Q3 Estimated Tax Payments are due, coinciding with the deadline to file Partnership and S-Corp returns on a 6-month extension.  October 16 is another crucial date, marking the deadline for extended returns for forms 1120 (C-Corp) and 1040 (Single Owner LLC, & Individual).  Remember, this is the final opportunity for those on a six-month extension, after which penalties will be inexorably levied.

Despite the standard December 31st year-end, startups with a non-standard fiscal year-end have a federal tax deadline 3.5 months after the end of their tax year month.  There are exceptions, of course.  For instance, businesses aligning their U.S. fiscal year with Australia’s (ending June 30th) face a September 15th deadline.  Also, the end of March and January are common fiscal year ends for UK-related and tech companies emulating Salesforce, respectively.  As a noteworthy point, companies closing down adopt a fiscal year-end date for their deadlines post the month they dissolve with the state.

Moreover, the infographic emphasizes the penalties associated with late filings and non-compliance.  These include a hefty $25,000 for late filing of Form 5472 (corporate income tax), $10,000 for 5471, FBAR, 8938 foreign banking, monthly penalties for partnerships & S-corps, and Delaware late filing fees.  Corporations are also liable for late-filing fees for owed corporate tax and delinquent payment penalties.  State-specific penalties may also apply, underlining the importance of adherence to the provided calendar.

In essence, our 2023 Tax Deadline Calendar for Startups seeks to provide an easy-to-follow roadmap, guiding businesses through their fiscal obligations while introducing a hint of color to the otherwise mundane task.  By adhering to these deadlines, startups can evade significant penalties, maintain regulatory compliance, and focus their energy on their burgeoning business ventures.Remember, our tax calendar cannot change the tax deadlines, but it can certainly add a bit of color to the calendar you use.  So let this guide serve as your beacon, illuminating your path through the stormy seas of the 2023 tax season, and steer your startup toward serene fiscal waters.  By meticulously adhering to these tax deadlines, you ensure your startup can focus on what it does best—innovate, grow, and succeed.

2023 Tax Deadlines for Startups - C-Corps, Partnerships and S-Corps