Federal Business Income Tax Returns Federal Income tax returns are due annually for all business entities.
The due dates reflected on the due date worksheet are for calendar year-end entities. If your business has a non-calendar year end, please contact us for specific due dates.
Penalties for failing to file a tax return are either: - up to 25% of the tax balance due for entities that owe tax, - $50 per shareholder, partner, member for entities that are pass-through entities that do not owe tax.
Estimated tax payments are required for entities that do owe tax. Failure to pay and failure to pay timely estimated tax payments are assessed "penalty and interest" for underpayment at a rate of about 9% per year (actual amounts will vary somewhat - please contact us for specific calculations).
The tax return form numbers for business returns are reflected below: Corporation: Form 1120 or 1120A Sub-Chapter S Corporation: Form 1120S Partnership, General or Limited: Form 1065 Partnership, Limited Liability Company: Form 1065 State Business Franchise Tax Returns Beginning for report years 2008 (2007 year-ends) Texas has revised the Franchise Tax Return that was previously based on "net income" and "capital" to a tax based on "Gross Margin".
"Gross Margin", as defined by the Texas Comptroller, for purposes of determining the amount of the franchise tax is not an "accounting" definition. The amount of tax is the lower of a three-part calculation based on criteria set forth by the comptroller. This is a new method of calculating the Texas Franchise Tax for report years 2008.
The "Gross Margin" method of determining franchise tax and the definitions for entity inclusion have been expanded to include almost all business entities. Please contact us for specific application to your circumstances.
Personal Property Tax and Payment Due Dates All business entities are subject to local personal property taxes. These are the taxes levied by the local school districts, municipalities, etc. - In the spring of each year, the taxing authority sends out "renditions" which are documents onto which you report the various types of personal property that your business owns. - In the fall of each year, the taxing authority will send out a bill reflecting the tax levied on the personal property as reported on the rendition.
Payroll Tax Return and Payment Due Dates Employers are required to withhold federal income and payroll taxes from their employee's paychecks. In addition, the employer must determine and pay the employer portion of payroll taxes. The employer must then remit those funds withheld and the taxes owed to the IRS and to the state in which they are doing business.
The tax return form numbers for payroll returns are reflected below: Federal Withholding and Payroll Tax: Form 941 Federal Unemployment Tax: Form 940 or 940EZ State Unemployment Tax: TWC (Texas Workforce Commission) Form C3 Wages: Form W-2 and W-3 Non-employee Compensation: Form 1099 and Form 1096 Sales Tax Return and Payment Due Dates Most businesses that sell goods and services are subject to charging, collecting, and remitting sales tax to the comptroller.
Due dates for sales tax returns are determined by sales volume.
In addition, the sales tax code contains a provision for "use" tax. This is the self-reporting of sales tax for personal property acquired by a company for business purposes but for which the company was not charged sales tax. This most typically occurs in situations where a Texas nexus business purchases products from a non-Texas nexus vendor and has those products shipped to directly to them. Please contact us if you believe this could apply to your business.
