S Corp back taxes.

CheekySun
CheekySun Member Posts: 2 Newcomer

I have back taxes for an s corp that i need to do for 2020. Is that something i can do on FreeTaxUSA. and does that mean i have to do four of them for a few month each, as i believe they are supposed to be done quarterly?

Answers

  • KristineS
    KristineS FreeTaxUSA Agent Posts: 148

    Hi CheekySun,

    Thanks for writing in with your question.

    You won't be able to use FreeTaxUSA to prepare an S-Corp tax return, Form 1120-S.

    FreeTaxUSA software is used to create personal income tax returns, which includes the Schedule K-1 the S-Corp tax return will create, and Schedule C business filers.

    I recommend you work with a licensed tax professional to carefully review your situation.

    Form 1120-S is an annual tax return. At a minimum, the due date to file your S-Corp was March 15th, assuming you're a calendar year filer. According to the Instructions for Form 1120-S, penalties for returns with no tax due and late filed are currently $235, "for each month or part of a month (up to 12 months) the return is late or doesn't include the required information, multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation's tax year for which the return is due," more if tax is due.

    If the business has employees, you're required to file Form 941, the employer's quarterly tax return, in addition to making federal tax deposits. Penalties for late tax deposits and late filed 941s are substantial.

  • CheekySun
    CheekySun Member Posts: 2 Newcomer

    Thanks for the response. I will look for a local tax pro.