2025 Business Return Filing Deadline Approaching for S-Corps and Partnerships
The March 15 deadline is an important filing milestone for pass-through entities such as S corporations and partnerships. For calendar-year filers, these entities must submit their federal informational returns—Form 1120-S for S-Corps and Form 1065 for partnerships—by the 15th day of the third month following the close of the tax year. For the 2025 tax year filings occurring in 2026, the traditional March 15 deadline falls on a Sunday, so the effective due date shifts to the next business day, March 16, 2026. Timely filing is particularly important because these returns generate Schedule K-1s, which owners and partners need in order to complete their individual income tax filings.
If additional time is needed, businesses may request an automatic six-month extension by filing IRS Form 7004 on or before the original due date. When the extension is filed timely, it extends the deadline for submitting the completed S-Corporation or partnership return to September 15, 2026 for calendar-year filers. This extension is granted automatically by the IRS once Form 7004 is submitted, meaning businesses do not need to provide a detailed explanation or receive formal approval. We have already performed this action for all of our business clients who have not yet filed their returns, to ensure for additional time for our clients if needed and for the most accurate return possible.
It is important to note that the extension provides additional time to file the return, not additional time to pay any taxes owed. While many partnerships and S-Corps are pass-through entities that generally do not pay federal income tax at the entity level, any applicable taxes or estimated payments must still be made by the original deadline to avoid potential penalties and interest. Filing the extension simply ensures compliance with the filing requirement while providing additional time to finalize the return and related reporting.
C-Corporation Returns and Minnesota First Quarter Estimated Tax Payments
The next key tax deadline to note is March 16 for certain C-Corporation estimated tax payments. While most calendar-year C-Corporation income tax returns (Form 1120) are due on April 15, corporations that are required to make quarterly estimated tax payments may have a Minnesota state first-quarter installment due on March 16, and federal first-quarter installment due on April 15, depending on their estimated tax schedule. Businesses should review their prior-year tax liability and expected current-year income to determine whether an estimated payment is required to avoid potential underpayment penalties. For calendar-year C-Corporations, the federal income tax return itself is typically due April 15, with an automatic six-month extension available if Form 7004 is filed by the original due date.
To provide clarity regarding the payments across entity types, it is important to note that first-quarter estimated tax payments for the 2026 tax year are generally due April 15, 2026 for individual taxpayers, S-Corporations, and partnerships at the federal level. Minnesota follows a similar quarterly schedule, with estimated payments due April 15, June 15, September 15, and January 15 of the following year for these calendar-year filers. Ensuring that estimated payments are made on time can help taxpayers remain compliant with both federal and Minnesota tax requirements and avoid underpayment penalties.
Minnesota DLI Releases ESST 2026 Annual Report
The Minnesota Department of Labor and Industry (DLI) recently released its 2026 report on Minnesota’s Earned Sick and Safe Time (ESST) law, highlighting significant education, outreach, and enforcement efforts during 2025. ESST requires employers to provide eligible employees with paid leave for personal or family health needs, public health emergencies, and safety-related concerns. Employees accrue one hour of ESST for every 30 hours worked, up to 48 hours per year, with carryover up to 80 hours, and employers must provide regular notice of accrued balances and comply with strict anti-retaliation provisions.
Since the Earned Sick and Safe Time (ESST) law took effect Jan. 1, 2024, the Minnesota Department of Labor and Industry (DLI) has focused on driving awareness and compliance through outreach, education, conciliation, and enforcement. Much of the early effort centered on helping employers understand their obligations by reviewing policies, payroll records and timekeeping practices, and resolving complaints through wage claims, warning letters and inform-and-educate (I&E) letters. In many cases, employers corrected compliance issues voluntarily once provided with clear guidance, avoiding the need for formal enforcement action.
Enforcement activity expanded in 2025, with investigations producing significant compliance outcomes. During the year, DLI restored approximately 49,272 hours of ESST and $432,445 in back wages to employees, compared to just over 2,200 hours and $42,000 restored in 2024. DLI has indicated it will continue balancing education with accountability, signaling to Minnesota employers that proactive compliance reviews remain an important risk management strategy as oversight continues to increase.
For more information: https://bit.ly/4uekw25
Taxpayers Report Delays in Receiving Form 1099-R
Many federal retirees who chose to receive their Form 1099-R by mail are still waiting for the tax document needed to complete their returns. U.S. Representative lawmakers recently sent a letter to the U.S. Office of Personnel Management (OPM) raising concerns about delays and difficulties retirees have experienced obtaining their forms. Lawmakers noted that some constituents have also struggled to reach customer service for assistance, warning that missing tax documents could put retirees at risk of filing late, incurring penalties from the IRS, or delaying refunds many rely on for everyday expenses. The concerns come as OPM expands digital access to tax forms through its Retirement Services Online system, where retirees can download or request a copy of Form 1099-R or use an online request tool. OPM indicated that individuals without an online account were mailed paper copies and suggested that winter storms in the Washington, D.C., and Northeast regions may have contributed to delivery delays.
