E-Filing Your Business Income Tax Return in 2025

Every year, businesses face the task of completing their tax returns. E-Filing business income tax return in 2025 involves submitting federal, state, and local income tax returns for both the business and its owners. It is a crucial obligation that must be fulfilled. The most effective approach is to plan ahead and commence preparation without delay.

What Taxes Are Due for 2024?

When it comes to taxation, one crucial factor for businesses to consider is how they are structured. This decision plays a key role in determining who is responsible for paying taxes on the company’s earnings.

E-Filing for Sole Proprietorships, Partnerships, LLC, and S Corp.

On the other hand, sole proprietorships, partnerships, limited liability companies, and S corporations operate differently. In these structures, owners are the ones tasked with paying taxes based on their portion of the business profits.

E-Filing for C Corp

For C corporations, the entity itself is responsible for paying income taxes on the profits it generates.

When Are Business Income Tax Returns Due for 2024?

Ensure you mark your calendar with the important income tax return filing deadline. Failure to meet this date could result in penalties for late filing that cannot be deducted from your taxes. Here are the specified federal income tax return due dates for the 2024 tax year.

E-Filing For Business Owners:

Make sure to mark your calendar with the deadline for filing income tax returns. Business owners are required to submit their personal income tax returns for the year 2024 by April 15, 2025.

E-Filing For Entities:

When it comes to tax filing deadlines for different types of entities, it’s important to note that partnerships and S corporations operating on a calendar year basis typically have to submit their 2024 income tax returns by March 17, 2025. When it comes to tax filing, there are different rules depending on the type of business entity. Limited liability companies (LLCs) that have more than one member are required to file partnership returns. Conversely, single-member LLCs have the option to include their business returns with their personal tax filings unless they choose to be taxed as corporations.

Be sure to review your state’s filing specifications when it comes to submitting business tax returns. Numerous states align their filing deadlines with those established for federal income tax purposes. If your business operations span across multiple states, you might be required to file income tax returns for each of these states.

When it comes to businesses engaging in online transactions, it is crucial to be mindful of the specific filing requirements. Certain states may perceive these transactions as establishing a significant tie (“nexus”) with them, potentially necessitating the filing of state tax returns in those jurisdictions.

In the event that your business or personal tax return deadline falls within a federal disaster area, there is a possibility for an extension. Individuals affected by disasters are automatically granted a 60-day extension for filing, although the IRS has the authority to provide an extension of up to one year if needed.

In the aftermath of Hurricane Helene in late September 2024, individuals impacted by the disaster were granted an extension to file their 2023 income tax returns. Specifically, those who had filed for an extension until October 15, 2024, were given until May 1, 2025, to complete their tax filings. The Internal Revenue Service (IRS) offers detailed guidance on filing extensions for individuals affected by natural disasters like Hurricane Helene.

E-File Taxes for a Business

In the fiscal year ending on September 30, 2023, the majority of business tax returns were E-File, submitted electronically. Data from the 2023 IRS Data Book shows that close to 91% of S corporation returns and over 89% of partnership returns were E-Filed, signaling a clear preference for digital filing methods among businesses.

E-Filing taxes electronically through the assistance of a free dedicated Tax Professional at PriorTax offers a swift and efficient method to finalize your return and move past the current year.

For individuals who own a business and report their portion of business earnings on their personal tax return, opting to E-File can expedite the process of receiving a tax refund. This method is particularly efficient when choosing to have the refund deposited directly into their account.

In the upcoming 2025 tax filing season, tax return preparers will be required to electronically file their tax returns if they submit more than 10 information tax returns, with only a few exceptions allowed.

This entry was posted on Thursday, October 17th, 2024 at 8:00 am and is filed under Tax for Business, Tax News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.