C Corp Tax Filing: How It Works

C Corps need to file corporate tax returns each year with local, state and federal authorities. Generally, C Corporations must file their tax returns using Form 1120 by the 15th day of the fourth month after the end of their fiscal year. For C Corps that follow a calendar year, this means the deadline is usually April 15th. If your C Corp has a different fiscal year, just calculate four months from your fiscal year-end to determine your specific deadline. If the tax filing deadline for your C Corp lands on a weekend or holiday, the IRS allows you to file on the next business day. If you need more time, you can request an extension by filing Form 7004, which gives you an extra six months to submit Form 1120. Keep in mind, though, that while the extension gives you more time to file, it doesn’t extend the time to pay any taxes owed. A new corporation needs to file its first tax return by the 15th day of the fourth month after the end of its first tax year. It should mark the "initial return" box on Form 1120. If a corporation shuts down, it must file its final tax return by the 15th day of the fourth month after it dissolves. It should mark the "final return" box on Form 1120. Both returns can be for a shorter period if the corporation wasn’t in business for the full year. If you have employees, you must file a Form W-2 for each one with the IRS. You need to fill out and send two copies of the form for each employee by January 31—one to the IRS and one to the employee. If you work with independent contractors, you need to file Form 1099-NEC by January 31, too. Send Copy A to the IRS and Copy B to the contractor.

For C Corp tax filing, Form 1120 is the main document you need. This is the standard form used by all US corporations to file their federal tax returns. Whether your C Corp has taxable income or not, you must file Form 1120 unless you have an exemption—even if you’ve filed for bankruptcy. On Form 1120, you report your C Corp income, deductions and taxes for the fiscal year. To complete it, you’ll need basic details like your corporation’s legal name, address, incorporation date and Employer Identification Number (EIN). You’ll also need financial statements, proof of gross income (like sales, royalties and capital gains) along with any deductions and tax credits. Don’t forget to include any estimated quarterly tax payments your C Corp made. Form 7004 is used to request an extension of time to file your business tax return. It gives you an additional six months to submit your forms. Missing the C Corporation tax filing deadline can result in penalties.

When it’s time for C Corp tax filing, knowing what you can deduct is key to saving on taxes. On Form 1120, you can lower your taxable income by deducting various business expenses. For example, you can deduct costs related to advertising campaigns. Office rent and utility bills are also deductible. If your C Corp invests in employee training or pays for industry conferences, those expenses are deductible, too. Additionally, if your business buys equipment like computers or machinery, you can deduct the depreciation of these items over time. Another deduction to consider is for business insurance premiums. If you’re leasing office space, the lease payments are deductible as well. For travel expenses, if your employees travel for business, you can deduct the costs of transportation, lodging and meals. Make sure to include all these deductions on Form 1120 for the C Corp tax filing deadline 2024. Accurate record-keeping is essential—save all your receipts and documentation.

Paying C Corp taxes and handling C Corp tax filing can seem daunting, but it’s manageable with a few key steps. Start by figuring out your C Corp taxable income—this is your total income minus any deductions and credits. This will tell you how much tax you owe. To stay on top of the C Corp tax filing deadline 2024, you need to file Form 1120. For most C Corps, this form is due by April 15th if your fiscal year follows the calendar year. Even if you file for an extension with Form 7004, remember it just gives you extra time to file Form 1120, not to pay your taxes. For tax years starting on or after January 1, 2024, Form 1120 has to be e-filed if the corporation files at least 10 returns of any type during the year. Previously, only corporations with total assets of $10 million or more and at least 250 returns had to e-file. The IRS has changed the rules, so now more corporations will need to e-file starting in 2024. If e-filing creates a serious difficulty, you can request a waiver. Most C Corps handle their tax payments electronically through the Electronic Federal Tax Payment System (EFTPS). If that’s not your preference, you can have your tax professional, financial institution or payroll service manage the payments for you. You could also ask your bank to make a same-day payment. Foreign corporations without a US office pay taxes directly to the IRS office where they file. Don’t forget about estimated taxes—make sure you pay these quarterly to steer clear of underpayment penalties. If you’re unsure or need help, a tax professional can guide you through the process and ensure you meet the C Corp tax filing deadline 2024.

If you miss the tax filing deadline for C Corp, there are important things to know. Missing the deadline for filing Form 1120 can result in penalties and interest on any taxes owed. The IRS imposes a late filing penalty if you don’t submit your return on time. This penalty is a percentage of the unpaid taxes for each month the return is late. However, if there’s no tax due, the C Corp late filing penalty with no tax due still applies, though it’s generally lower. If you miss the deadline but don’t owe any taxes, you’ll still face a late filing penalty, but you won't have to pay additional penalties for unpaid taxes. If you realize you’ve missed the deadline, file Form 1120 as soon as possible. Even if you can’t pay the full amount immediately, filing the return quickly can help reduce penalties. The IRS may offer payment plans if you need extra time to pay any taxes owed. FlyFin’s expert CPAs offer unlimited tax support on the app, including preparing and filing returns, offering tax planning advice and making sure you’re all set for the C Corporation tax filing deadline. AI also finds all your business deductions, saving you the most possible.