Corporate Returns Due March 17th

I've been busy finishing up and filing corporate returns for my clients, and I imagine many other entrepreneurs are busy finishing up their own business tax returns as well. This is just a gentle reminder that the deadline to file a corporate tax return is Monday, March 17, 2008. Usually these returns have a March 15th deadline, but the due date is pushed back because the 15th falls on a Saturday.

If a corporation needs more time to file, it can request an extension using IRS Form 7004. This will give the corporation an extra 6 months to file its tax return, but any taxes due have to be paid by the March 17th deadline to avoid penalties and interest.

Many entrepreneurs might be finishing up their business tax returns this weekend, and so here's a few tips. Small business owners should be on the look out for these top business audit issues. Certainly one of the biggest area where there's confusion is whether a worker is an employee or an independent contractor. Plus, it always helps to have good recordkeeping and to hire an accountant versed in small business issues. These two practices can go a long, long way to making your business finances understandable and your tax filing smooth. Finally, double check all your business expenses to make sure you aren't overlooking anything you could deduct.

Speaking of business expenses, insurance premiums can be deducted. But certain premiums, such as for health insurance that covers an employee, might need to be reported separately. Business owners of an S-Corporation, for example, would report their health insurance premiums separately, and then take a deduction on their own 1040.