Mechanism and Deadlines for Filing Tax Returns in the USA for Companies and Residents
Introduction
The tax system in the USA requires mandatory reporting of income by both individuals and companies. The process of filing tax returns is regulated by the Internal Revenue Service (IRS) and involves a series of procedures that must be followed to avoid penalties and issues with the tax authorities.
In this article, we will thoroughly examine the mechanism for filing tax returns, deadlines for various categories of taxpayers, as well as penalties for late submission.
1. Filing Tax Returns for Individuals (US Residents)
Who is required to file a tax return?
US residents (citizens, green card holders, and individuals meeting the "substantial presence" criteria) are required to file a tax return if their income exceeds the established threshold amounts.
Minimum income requiring filing a tax return (for 2024):
| Category | Age | Income Requiring Filing |
|---|---|---|
| Single Taxpayers | Under 65 years old | $13,850 |
| Single Taxpayers | 65 years old and older | $15,700 |
| Married Couples (Joint Return) | Under 65 years old | $27,700 |
| Married Couples (Joint Return) | 65 years old and older (one spouse) | $29,200 |
| Married Couples (Joint Return) | 65 years old and older (both spouses) | $30,700 |
If the taxpayer earns income from self-employment greater than $400, they are also required to file a return.
The Process of Filing a Tax Return for Individuals
-
Document Gathering:
- Form W-2 (if employed).
- Form 1099 (if receiving dividends, interest, royalties, or working as an independent contractor).
- Form 1098 (if paying mortgage interest).
- Documents on medical expenses, charitable contributions, and other tax deductions.
-
Choose a Filing Method:
- Electronic Filing (E-filing) – the fastest and most convenient method through IRS services or tax platforms (TurboTax, H&R Block).
- Paper Filing – sending the completed Form 1040 by mail to the IRS.
-
Paying Taxes (if there is a balance due):
- Can be paid online via IRS Direct Pay, by bank transfer, or check.
Filing Deadlines for Individuals
- Standard Filing Deadline – April 15 (if it is a weekend, the deadline is extended to the next business day).
- Extension – can file Form 4868, which gives an additional 6 months (until October 15), but taxes must still be paid by April 15.
Penalties for Late Filing and Non-payment of Taxes
- Penalty for Late Filing – 5% of the tax amount for each month of delay (up to 25%).
- Penalty for Non-payment – 0.5% for each month of delay (up to 25%).
2. Filing Tax Returns for Companies
Which Companies Are Required to File a Tax Return?
Any registered company in the USA (C-Corporation, S-Corporation, LLC) is required to file a tax return, regardless of whether it had income in the reporting year.
The Process of Filing a Tax Return for Companies
-
Gather Financial Documents:
- Accounting reports (balance sheet, income statement).
- Forms W-2 and 1099 for employees and contractors.
- Documents on business expenses and investments.
-
Choice of Tax Return Form:
| Company Type | Form to File |
|---|---|
| C-Corporation | 1120 |
| S-Corporation | 1120S |
| Partnership (LLC, LP) | 1065 |
| Sole Proprietorship | 1040 Schedule C |
- Filing and Payment of Taxes:
- Filing can be done electronically or by paper.
- Taxes can be paid via bank transfer, online, or by check.
Tax Return Filing Deadlines for Companies
| Company Type | Standard Filing Deadline | Extended Deadline |
|---|---|---|
| C-Corporation | April 15 | October 15 |
| S-Corporation | March 15 | September 15 |
| Partnership (LLC, LP) | March 15 | September 15 |
| Sole Proprietorship | April 15 | October 15 |
Penalties for Late Filing
- C-Corporation:
- 5% of the tax amount for each month of delay (up to 25%).
- S-Corporation and Partnerships:
- $220 per owner for each month of delay (up to 12 months).
3. Filing Extensions (Tax Extension)
If an individual or company is unable to file their return on time, they can request an extension.
- Form 4868 – for individuals (extension until October 15).
- Form 7004 – for companies (extension until September 15 or October 15).
Note: requesting an extension to file does not extend the tax payment deadline.
Conclusion
Filing a tax return in the US is a mandatory procedure for both individuals and companies.
Key filing deadlines:
- Individuals: by April 15 (or October 15 if extended).
- Companies: by March 15 or April 15, depending on the company type.
Late filing and non-payment of taxes can result in significant penalties. To avoid problems, it is recommended to keep track of income and expenses throughout the year and use online services for preparing tax returns.
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