The USA Internal Revenue Service (IRS) has specific deadlines for tax filing, extensions, and payments. If you can’t comply with the requirements and deadlines, it can lead to penalties and interest charges plus loss of Good Standing Status. This leads to loads of worries and frustration. So, staying compliant with the IRS’s filing deadlines and requirements is important for individuals and businesses.
Before understanding the deadlines for IRS filings, you should understand the type of IRS filings required to be done for US LLC.
Types of IRS Filings
1) Single-Member LLC (If Treated as Disregarded Entity)
- Form 1040: Report the LLC’s income on the owner’s tax return (for U.S. residents only).
- Form 1040 NR: Report the LLC’s income on the owner’s tax return (for foreign residents only).
- Form 5472: Every foreign-owned single-member LLCs is required to file this additional form. You need to declare all transactions between the LLC and the foreign owner made during the year (e.g., salary, dividend, contributions, loans, reimbursements).
- State Annual Reports: Depending on the state, an annual report may also be required to maintain good standing.
2) Multi-Member LLC (Treated as a Partnership)
- Form 1065 (Partnership Tax Return): Required for reporting partnership income, deductions, and credits.
- The LLC itself does not pay income tax; instead, the profits or losses are passed through to its members.
- Schedule K-1: Each partner receives a profit/loss in Schedule K-1, which reports their share of the LLC’s income, deductions, and credits. Each partner must file Schedule K1 in their tax return (Form 1040 or Form 1040NR).
- Form 5472: Required to be filed if a foreign person or foreign entity owns 25% or more of the LLC and there are reportable transactions. (e.g., salary, dividend, contributions, loans, reimbursements).
3) C-Corp (Corporation)
- Single / Multi Member LLC (not treated as a disregarded entity) can file their IRS filing as a separate corporation without passing through taxation to their owners.
- Form 1120: US LLC needs to file Form 1120 and be required to report income, gains, losses, deductions, and credits and pay a flat 21% tax on profit.
- Form 5472: Required to be filed if a foreign person or foreign entity owns 25% or more of the LLC and there are reportable transactions. (e.g., salary, dividend, contributions, loans, reimbursements).
- Form 8832: By default, LLC is treated as a disregarded entity. However, if you want to treat your LLC as a corporation for tax purposes. You need to file this form.
IRS Filing Deadlines
1) The deadline for individual taxpayers’ IRS filing Form 1040 is April 15 of the next calendar year For example, for the Year 2024, the due date is 15th April 2025. The deadline is moved to the following business day if this date falls on a weekend or a legal holiday.
2) Extensions are available through Form 4868, which grants an additional six months to file, typically until 15th October. However, the extension applies only to the filing deadline, not the payment deadline. The taxes you owe must be paid by the 15th of April if you want to avoid penalties and interest charges.
3) On the 15th day of the fourth month following the fiscal year’s conclusion, filers of tax returns are required to submit their returns.
We have summarised all the IRS filing Forms in below tabular format for your ready reference:-
|
Form Name |
Who Needs to File |
What to Report in the Form |
Due Date |
Consequence / Penalty of Not Filing |
|
Form 1040 |
U.S. residents reporting individual income (including LLC members taxed as sole proprietors or partnerships). |
Personal income, including profits/losses from LLC (via Schedule C for SMLLC or Schedule E for partnerships). |
April 15 (calendar year); October 15 with extension. |
Late filing penalty: 5% of unpaid tax per month (max 25%). Late payment penalty: 0.5% of unpaid tax per month (max 25%). |
|
Form 5472 |
Foreign-owned U.S. LLCs (25% or more foreign ownership) and 25%-foreign-owned U.S. corporations. |
Reportable transactions (monetary and non-monetary) between the U.S. entity and its foreign owner or related parties. |
April 15 (calendar year); October 15 with extension. |
$25,000 penalty for failure to file or incomplete filing. Additional $25,000 for each 30-day delay after IRS notice. |
|
Form 1065 |
Multi-Member LLCs treated as partnerships. |
Partnership income, deductions, credits, and member distributions. |
March 15 (calendar year); September 15 with extension. |
$220 per partner per month for late filing (max 12 months). |
|
Form 8832 |
LLCs electing to change default tax classification (e.g., from partnership/disregarded entity to corporation). |
Entity classification election (partnership, corporation, or disregarded entity). |
75 days after election or effective date. |
Classification defaults to IRS rules. May result in filing under the wrong tax treatment, causing penalties or confusion. |
|
Form 1120 |
LLCs or entities taxed as C Corporations. |
Corporate income, deductions, gains, losses, and credits. |
April 15 (calendar year); October 15 with extension. |
Late filing penalty: 5% of unpaid tax per month (max 25%). Late payment penalty: 0.5% of unpaid tax per month. |
|
Form 1120-S |
LLCs or entities taxed as S Corporations. |
Corporate income, deductions, credits, and distributions to members. |
March 15 (calendar year); September 15 with extension. |
Late filing penalty: $210 per shareholder per month (max 12 months). |
|
Schedule K-1 |
Issued by partnerships (Form 1065) or S Corporations (Form 1120-S) to their members/shareholders. |
Member’s/shareholder’s share of income, deductions, and credits from the LLC or corporation. |
Same as parent form (Form 1065 or 1120-S). |
Not issuing K-1s can result in penalties to the entity. Individuals may face filing issues without this information. |
|
Form 1040-NR |
Non-resident aliens earning U.S.-sourced income or owning a U.S. LLC. |
U.S.-sourced income and tax owed by non-resident individuals. |
April 15 (calendar year); June 15 for non-residents. |
Same as Form 1040: 5% of unpaid tax per month (max 25%). |
|
Form 940 |
LLCs or corporations with employees. |
Annual federal unemployment taxes (FUTA). |
January 31 of the following year. |
Penalty of 2%-15% of unpaid tax, depending on delay. |
|
Form 941 |
LLCs or corporations with employees. |
Quarterly payroll taxes (Social Security, Medicare, and federal income tax withholding). |
Last day of the month following the quarter. |
2%-15% penalty on unpaid amounts, plus interest. |
|
Form 2553 |
LLCs electing to be taxed as an S Corporation. |
Election to classify the LLC as an S Corporation for tax purposes. |
75 days after start of tax year or incorporation. |
Late election may result in default C Corporation status and double taxation. |
|
Form W-8BEN |
Foreign members/partners of U.S. LLCs. |
Certifies foreign status and claims treaty benefits to reduce withholding tax on U.S.-sourced income. |
Provided to the LLC or withholding agent before income payment. |
Default withholding of 30% if not submitted. |
|
Form 8805 |
Provided by U.S. LLCs to foreign members for reporting withholding under Section 1446. |
Foreign partner’s share of U.S.-effectively connected income and tax withheld. |
Same as parent form (Form 1065). |
Failure to file results in withholding compliance issues and potential IRS penalties. |
Essential USA Company Compliance Requirements
Maintain financial records for at least 3 years, including receipts, payroll, and asset documentation.
Ensure employee income taxes are properly withheld, and social security and Medicare taxes are submitted.
Besides IRS requirements, companies must comply with state-specific tax filings.
Businesses may need to file annual reports or information returns depending on their structure.
Penalties for Missing Deadlines
Interest charges on outstanding bills until they are paid in full, a Failure-to-Pay penalty of 0.5% each month (also capped at 25%), and a Failure-to-File penalty of 5% of unpaid taxes per month (up to 25%). If nonprofits don’t file Form 990 for three years, they risk losing their tax-exempt status.
Conclusion
Meeting IRS filing deadlines is essential for financial compliance and avoiding penalties. From understanding key deadlines to fulfilling company compliance requirements, taxpayers can navigate this process smoothly by staying organized and informed.
FAQs
Can I file for an extension?
Individuals can use Form 4868, and corporations can use Form 7004 to request a 6-month extension.
How can I avoid penalties?
File accurately and on time, pay taxes owed by the original deadline, and use professional
assistance if needed.
At E-startupIndia, we specialize in simplifying complex tax filings for individuals & businesses. Visit us today to ensure your IRS filings are handled professionally. Business registration in USA
