How Do I File and Pay My Business Income Taxes?
Your business income tax return has been prepared and it's all ready for the final steps: filing your return and paying your taxes. Filing and paying are separate processes, but in some cases, you can combine them.
Before You File and Pay
You have finished your business tax return and you are ready to send it in and pay your taxes. But first, there are a couple of things you need to know:
- Keep an eye on the due date. We all know that taxes are due on April 15, right? Well, not necessarily. IRS tax due dates change every year, due to holidays and weekends. Check this article for the due dates for the tax return you are filing for the current tax year.
- Make sure the tax payment and the return get there on time. You need to know when the IRS considers a tax return or payment to have been received.
- Do an error check to make sure you haven't missed anything that will get your return sent back by the IRS. This article describes the most common errors on business income tax returns.
Business Income Tax Filing Methods
Business Combined with Personal: If you file your business income tax on Schedule C along with your personal tax return, or if you are filing a Schedule K-1 from your partnership or S corporation distributions, here are some options:
- The most common way to file online is to use E-file, which is available from tax software programs or your tax preparer can e-file for you.
- You can also file a paper return, with or without a payment. Where and how your file your paper return depends on your location and whether you are paying and filing together.
Business Separate from Personal: If you are filing a tax return for a partnership, corporation, or S corporation, here are your options:
Payment Options for Paying Business Taxes Online
Using a Credit or Debit Card
You can pay by credit or debit card through one of the service providers listed by the IRS. These service providers charge a fee for transmitting tax payments. The two service providers listed by the IRS are:
Payments may be transmitted by credit card/debit card for Form 1040 (including your Schedule C for your self-employed income) and you may also transmit payments in this manner when you file an application for extension on Form 4868. The credit/debit card payment option is not applicable to payments for partnership tax returns on Form 1065, corporate tax returns on Form 1120, or s-corporation tax returns on Form 1120S.
Using the IRS Electronic Federal Tax Payment System (EFTPS)
You can use the Electronic Federal Tax Payment System (EFTPS) at https://www.eftps.gov/eftps/ to pay all federal tax payments. You will first need to enroll in the system.
Using Electronic Funds Transfer
You can pay your business taxes through electronic funds transfer in one of two ways:
- Through your tax preparer
- By using tax preparation software such as TaxCut or TurboTax
Check the free filing options for filing with software.
Mailing Your Tax Payment
You can mail your tax payment along with return directly to the IRS, and you can use this option if you are paying at the same time as you are filing for an extension on Form 4868 or Form 7004.
If you are filing your taxes using Form 1040, you will need to complete and attach the payment voucher, Form 1040-V, to your payment. If you are mailing in your payment, be sure to address it to U.S. Treasury (or United States Treasury), and include the business Tax ID Number or your Social Security Number on the check.
Can't Pay Your Taxes?
If you are not able to pay all of your tax bill, you have several options. You can pay with an installment plan or you may qualify for an offer in compromise. See this article for more information about tax payment options.