Image by Gerd Altmann from Pixabay

By Lexie Lu

Pressure caused by the coronavirus outbreak has led the IRS to push back the 2019 tax deadline. COVID-19 also inspired the passage of a relief bill, the CARES act, which provides a few major tax relief provisions for businesses.

However, while the deadline has been pushed back, the filing process is about the same as always. Below, we’ll cover how to file your business’s 2019 taxes — as well as some of the big changes you’ll want to be aware of.

The basics of filing your 2019 business taxes

To start — I’m not a tax professional or accountant, and you should seek professional help if you need further clarification on any of the issues covered in this article. In general, though, the process for filing 2019 taxes is almost exactly the same as any other year, with a few major differences.

Begin by collecting all business records, including reports on earnings and expenses. 

Next, find the correct IRS tax form for your company. The one you use will depend on how your business is incorporated. Owners of sole proprietorships, for example, can report all expenses and income on a Schedule C attachment to their personal tax return. You may also use the Schedule C attachment if your business is an LLC and you are the sole owner.

If your enterprise is incorporated differently, you’ll need to file a separate business tax return using IRS Form 1120 — or 1120S if your business is an S-Corp. These forms are longer than the Schedule S attachment and will require more detail about your company.

The updated 2019 tax deadline

You’ll need to file the correct form by the tax deadline. In most years, this is April 15. In 2020, however, it’s been pushed back to July 15. You don’t need an extension if you want to file after April 15 — all taxpayers automatically qualify for the new deadline. If you need more time beyond July 15, however, you will need to request an extension.

While you can wait until this deadline, getting done early is a better strategy. The sooner you file, the sooner you’ll receive any tax refund you’re eligible for. You’ll also reduce the risk of missing the deadline, which can have serious consequences.

Also, while many states have elected to push back their own deadlines, the federal tax delay doesn’t automatically apply to them. You should check to see if your state has delayed its deadline before waiting to file.

If you owe back taxes, you’ll likely have to pay them, plus any penalties or interest accumulated.

You have a few different options for paying back taxes — including using a debit or credit card or applying for an installment agreement — but you should make sure you pay them. Otherwise, you can face serious consequences, like garnished wages or seizure of bank assets.

2019 tax changes you need to know about

There are also a few notable tax changes for the 2019 tax year that you’ll want to be aware of.

First, you may be eligible for a stimulus check of up to $1,200 if filing as an individual or $2,400 if filing jointly, plus an additional $500 for each qualifying child. The reward amount will be based on your 2019 personal tax filing, or your 2018 filing if you haven’t filed yet.

The initial coronavirus relief bill passed in March, called the CARES act, provides a few relief options for businesses, including the Paycheck Protection Program and the reintroduction of NOL carrybacks.

The 2017 Tax Cuts and Jobs Act (TCJA) eliminated net operating losses (NOL) carrybacks. Before that law was passed, businesses were able to “carryback” losses to recover a percentage of the income taxes they paid over the past two years. The CARES Act reintroduces and expands these carrybacks, allowing businesses to use NOLs to offset taxable income in 2018, 2019 and 2020.

Filing your business’s 2019 taxes

The filing process is mostly the same for 2019 as other years, but you should be aware of the delayed filing deadline and relief provisions available to your business.

You may also want to prepare for delays in any tax refund you expect to receive. There have been reports that the IRS is struggling to handle the influx of tax refund requests from businesses, which may slow down the processing of refunds.

As long as you’re aware of all these changes, you’ll be prepared to tackle your business taxes this year.

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Lexie Lu is a freelance designer and writer based in Williamsport, PA. She co-founded the blog, Design Roast, a resource for web designers and marketers, in 2015. She specializes in graphic design, web design, branding, UX design, and mobile app wireframes. She earned her BA from Lycoming College. While not working in her home office, she enjoys walking her goldendoodle, cooking for friends and family, and watching way too much HGTV. Lexie’s work and writing can be found on well-known sites such as Business.com, Website Magazine, Marketo, and Envato. Feel free to connect with her on Design Roast or via Twitter @lexieludesigner.