Filed an extension? Reasons Not to Miss the Tax Deadline

You filed an extension for your taxes and now realized the next deadline is approaching. It can be difficult to keep up with everything you need to hand over to the IRS while running an early-stage startup. But missing the next deadline could put you further in the hole operationally and financially.

For S Corporations and Partnerships, the extended deadline is September 16th.  C Corporations have an extended deadline of October 15th. Staying organized throughout the year helps, but there are other factors that most founders don’t have the time to look into. Tax laws and regulations change.  You’ll need time to understand them and how they affect your business. Hiring a tax expert can ease the stress and confusion, as well as ensure you meet the various deadlines. 

To give you that extra push, here’s why you should file before the extended tax deadline:

Late penalties and interest

1. Failure to file
2. Failure to pay
3. Failure to pay proper estimated tax

Potential loss of R&D Tax Credit

• Technical uncertainty You would need to demonstrate that you are developing or improving a process or product. It must be beyond making aesthetic changes.
• Process of experimentation Did you explore any alternatives?  Showing that you fully evaluated the product or process through modeling, simulation, trial and error metrics will be wanted by the IRS.
• Technological in nature Experimentation must be supported by hard sciences like engineering, chemistry, or computer science.
• Qualified purpose The purpose of the research is to bring improvements to a product or process or creating a new product or process. The results should result in enhanced performance, ability, function, reliability or quality.

Potential Loss of Investment

Here’s what you can do to meet the tax deadline

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