Federal tax returns for a US company

A company here answers to two authorities that share nothing: the state that registered it, and the federal tax service. The state wants its annual report and its franchise charge. This page is about the other one.

The state side — what each registry bills every year and by which date — belongs with company registration in the USA. The service without a country is corporate tax support. Everything we run stateside is listed on the USA page.

What you get

• The right federal return identified from how your entity is actually classified
• The information form for a foreign owner filed with the return rather than after it
• Instalments planned through the year instead of one payment that arrives short
• An extension filed before the date rather than an explanation sent after it
• Elections made deliberately, with the ones closed to you ruled out in advance

Which return, and when

An ordinary corporation

Files by the fifteenth day of the fourth month after its tax year ends — mid-April for a calendar year. A year ending on 30 June is the exception and moves a month earlier. Taxable income is charged at a flat 21%.

A partnership or a pass-through corporation

Files by the fifteenth day of the third month, a full month ahead of the corporate date, and issues each owner a statement of their share.

A foreign-owned company with one member

Is disregarded for income tax and still has to file: a skeleton corporate return with the information form on related-party transactions attached, due on the corporate date.

Everyone who needs more time

An automatic extension is available on application, but it moves the filing date only. Tax owed is still due on the original one.

What the tax service charges for being late

A return filed late draws 5% of the tax due for each month or part of a month, capped at 25%. If it is more than sixty days late the minimum is $525 or the whole underpayment, whichever is smaller. Unpaid tax adds 0.5% a month on top. A partnership return is charged differently: $255 for each month, multiplied by the number of partners, for up to twelve months. The information form for a foreign owner stands apart at $25,000, and a further $25,000 for every thirty days the failure runs on after ninety days from the service's notice. An incomplete form counts as one never filed.

Sources: the 21% rate — Publication 542; filing dates, the 30 June exception and the instalment months — the instructions to the corporate return and to the partnership return; the penalties — the service's failure-to-file page; the foreign-owner form, its penalty and the skeleton return — the instructions to Form 5472.