Welcome to March, and I'm ready for another update. The following information is for taxpayers who file Form 1120-S for S-Corporations and Form 1065 for Partnerships. Since this year, the due date is Sunday, March 15; the next business day, March 16, 2026, will be the due date. The penalty for late filing is $255 per month per shareholder or partner, with a maximum penalty of twelve (12) months. For failure to furnish Schedule K-1 to a shareholder when due, a $340 penalty may be imposed for each Schedule K-1 for which a failure occurs. If you want to avoid this and you need more time to gather your receipts and complete all the information necessary for your income and expenses, you'll need to file an extension for your company by March 16, 2026. The extension will allow you to complete your financial information and file your company tax return by September 15, 2026.
Next, it is crucial for taxpayers requesting that the IRS treat their Limited Liability Company (LLC) as an S corporation to file Form 2553. You must make this election no later than two months and fifteen days after the company is created or the beginning of the corporation's tax year, and the date to file is March 16, 2026, perhaps, if the company has missed the due date in the first year of operations. You can apply for late election relief; you will need to include a reasonable cause for failing to file Form 2553 on time.
Next, it is an update of credits for the 2025 tax return. The Child Tax Credit amount increased up to $2,200 per qualifying child and the Additional Child Tax credit, the refundable portion of the Child Tax Credit, is $1,700.
Moreover, the Earned Income Tax Credit amount will vary based on income, family size and filing status. The maximum Earn Income Tax Credit (EITC) and number of children, with maximum credits from $649 (no children) up to $8,046 (3+ children), and income thresholds like $61,555 for single filers with 3+ children, or $68,675 if married filing jointly. The threshold income limits are around $19,104 for single filers with no children and $61,555 for single filers with 3+ children, with higher limits for married couples filing jointly.
Last, you must file your past tax returns and do not miss the opportunity to claim the EITC from prior years. The latest tax return you can file to claim the 2022 EITC is due on April 15, 2026.
More good business tax stuff next month. Remember, this is a very brief overview. It is your responsibility to discuss any tax and financial changes with your professional advisor for assistance in evaluating your situation.
For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor. Provided by Pedro L. Baldeon, E.A., 321-632-5726, a member of the National Society of Tax Professionals.
