Filing corporate taxes on time is critical to avoid penalties and mitigate risks. But what happens if you miss the deadlines? Let’s break it down and explore the implications of late corporate tax filing.
There are two important timelines for corporate taxes:
If you’ve paid your balance within the 90-day period and owe nothing, there’s no penalty for filing your return after the 180-day mark. However, if you miss the 90-day payment deadline and still owe taxes by the 180-day filing deadline, penalties kick in.
Failing to pay your balance on time results in a 5% penalty on the total amount owing, plus an additional 1% per month for every month the balance remains unpaid. These penalties can add up quickly, creating unnecessary financial strain on your business.
Late filing doesn’t just lead to penalties—it also raises your business’s risk profile with government agencies. A higher risk profile increases the likelihood of audits, adding another layer of complications and stress to your business operations.
The key to avoiding penalties and audit risks is maintaining up-to-date bookkeeping records. With accurate and timely financial information, you can meet both payment and filing deadlines with ease. Partnering with experienced professionals ensures compliance and peace of mind, allowing you to focus on growing your business.
At Gauvreau | Accounting Tax Law Advisory, we specialize in helping businesses meet their tax obligations on time while optimizing their financial strategies. Contact us today to ensure your corporate taxes are filed correctly and on schedule. Reach out to us now to streamline your corporate tax process and avoid unnecessary penalties.