What are the tax deadlines for small businesses in Rockville?

Kenneth J Watter CPA PA is a Certified Public Accounting firm based in Rockville, Maryland, offering tax preparation, bookkeeping, payroll, audit, forensic accounting, and advisory services. The firm serves individuals, nonprofits, and businesses across Maryland, the D.C. metro area, and all 50 U.S. states, with a personalized and expert driven approach.

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Small business owners—sole proprietors, partners, S-corporation shareholders, and self-employed individuals—who expect to owe $1,000 Kenneth J Watter CPA PA or more in tax after withholding must make quarterly estimated tax payments. The IRS sets fixed calendar deadlines for these payments: April 15, June 15, September 15, and January 15 of the following year. If any date falls on a weekend or federal holiday, the deadline shifts to the next business day. Timely payments help avoid underpayment penalties under IRC Section 6654.

Annual Federal Return Filing Deadlines

Form 1040 & Schedules

Individuals and single-member LLCs file Form 1040 by April 15. Extensions may be requested via Form 4868, pushing the deadline to October 15. However, an extension postpones filing, not payment; any tax due remains payable by April 15 to avoid interest and penalties.

Partnerships, S Corporations & C Corporations

Partnerships (Form 1065) and S-corporations (Form 1120-S) must file their returns by March 15 for calendar-year filers, with Form 7004 extending the deadline by six months to September 15. C-corporations (Form 1120) file by April 15, extendable to October 15. The consistent six-month extension window applies, but corporations must estimate and pay any balance due by the original deadline.

Nonprofit Filings

Tax-exempt organizations file Form 990 series returns by the 15th day of the fifth month after fiscal-year-end—typically May 15 for calendar-year nonprofits. Form 8868 grants a six-month extension through November 15. Accurate timing preserves tax-exempt status and compliance with annual filing requirements.

Maryland State Tax Deadlines

Corporate & Pass-Through Entity Returns

Maryland corporate income tax (Form 500) and pass-through entity returns (Form 510 for partnerships, Form 510-S for S corporations) share federal deadlines—April 15 and March 15, respectively. Maryland permitting automatic six-month extensions aligns state deadlines with IRS extension approvals, but estimated state tax payments remain due on the standard quarterly schedule (April 15, June 15, September 15, January 15).

Sales & Use Tax Filings

Maryland sales and use tax is due to the Comptroller’s office by the 20th day after each reporting period. Businesses with average monthly liabilities over $3,000 must file monthly returns by the 20th of each month covering the previous month. Quarterly filers remit by April 20, July 20, October 20, and January 20. Late filings incur interest and penalty charges.

Unemployment Insurance Taxes

Employers file Maryland unemployment insurance returns monthly by the 15th day of the following month via the Maryland Unemployment Insurance Tax System (UEX). Quarterly contribution reports are not permitted—monthly filing is mandatory to maintain real estate cpa rockville md compliance and avoid late fees.

Payroll Tax & Information Return Deadlines

Federal Payroll Tax Deposits (EFTPS)

Employers deposit federal income tax and FICA taxes through EFTPS. Semiweekly deposit schedules apply if aggregated tax liability exceeds $50,000 in the prior four quarters; otherwise, monthly deposits are due by the 15th. Electronic filings expedite deposit acknowledgment and minimize deposit errors.

Quarterly Payroll Returns

Form 941, reporting quarterly federal payroll taxes, is due the last day of the month following each quarter—April 30, July 31, October 31, and January 31. Form 940, covering federal unemployment tax, is due January 31.

Annual Information Returns

W-2 wage statements and W-3 transmittal forms must be furnished to employees and Social Security by January 31. Similarly, Form 1099-NEC for contractor nonemployee compensation is due January 31 to recipients and the IRS. Filing deadlines ensure timely reporting of income to third parties and the government.

Local & County-Level Requirements

Business Personal Property Returns

Montgomery County requires businesses to submit an Annual Personal Property Return by April 15 each year, reporting tangible assets such as equipment and furniture. A one-time extension to July 31 is available with the Local Department of Finance. Late filings incur civil penalties and interest on assessed values.

Real Property Tax Installments

While not strictly a “small business tax,” Rockville property owners pay real estate taxes in two semiannual installments: July 1 and December 1. Businesses owning real property should track these dates to maintain good standing with the county’s tax collector.

Extension Procedures & Penalty Prevention

Federal Extension Filings

Use Form 4868 (individuals) or Form 7004 (business entities) by the original due date to obtain an automatic six-month extension. Maryland accepts federal extension approvals automatically; no separate state extension form is required. Extensions are strictly for filing, not for payment—estimated tax obligations remain due on their respective deadlines.

Safe-Harbor Rules for Estimated Payments

To avoid underpayment penalties, small businesses can rely on “safe-harbor” provisions: paying at least 90% of the current year’s liability or 100%–110% of the prior year’s liability in timely installments shields against penalties. CPAs calculate safe-harbor amounts based on historical returns and projected income, ensuring compliance.

Best Practices for Deadline Management

• Centralized Calendar: Maintain a shared calendar of all federal, state, and local deadlines for estimated payments, returns, and payroll filings.
• Automated Reminders: Use CPA-managed client portals that send email and SMS alerts 30, 15, and 5 days before each deadline.
• Early Document Gathering: Collect supporting documents—bank statements, invoices, payroll records—two weeks before deadlines to allow peer review and correction.
• Engagement of CPA Services: Engage your CPA at least 60 days prior to major filing dates to accommodate planning, extensions, and any necessary complex analyses.

Conclusion

Small businesses in Rockville navigate a complex web of federal, Maryland state, and county deadlines encompassing estimated tax payments, annual return filings, sales and use tax remittances, payroll tax deposits, and business personal property returns. Awareness of key dates—April 15, March 15, January 31, and various monthly or quarterly filing deadlines—is essential to maintain compliance and avoid interest and penalties. By leveraging proactive planning, safe-harbor calculations, automated reminders, and expert CPA guidance from firms like Kenneth J Watter CPA PA, businesses can meet all deadlines seamlessly, optimize cash flow, and focus on growth with confidence.