The IRS began accepting and processing 2024 individual income tax returns on January 27, 2025, opening the filing season for approximately 140 million individual returns. For business owners filing partnership returns on Form 1065 or S corporation returns on Form 1120-S, the filing deadline arrives even sooner: March 17, 2025. Understanding the key dates, new developments, and practical considerations for the 2025 filing season helps ensure that returns are filed accurately and on time.
Key Filing Deadlines
Individual income tax returns for the 2024 tax year are due April 15, 2025. Taxpayers who need additional time can file Form 4868 for an automatic six-month extension, which moves the filing deadline to October 15, 2025. However, the extension applies only to the filing deadline, not to the payment deadline. Taxpayers who owe taxes must still pay the estimated amount due by April 15 to avoid interest and late payment penalties.[1]
Partnership and S corporation returns are due March 17, 2025. This earlier deadline ensures that Schedules K-1, which report each partner's or shareholder's share of income, deductions, and credits, are available to individual owners in time to prepare their personal returns. Extensions for these entity returns push the filing deadline to September 15, 2025.
Calendar-year C corporation returns on Form 1120 are due April 15, 2025, with an automatic six-month extension available to October 15, 2025. Estimated tax payments for all entity types follow their normal quarterly schedules.
New and Updated Forms
The 2024 filing season introduces several changes to forms and schedules. Form 1099-DA, the new digital asset reporting form, is available for brokers who choose to begin reporting early, though mandatory reporting does not begin until 2025 transactions. Taxpayers should review all Forms 1099 carefully, as increased information reporting means the IRS will have more data to cross-reference against filed returns.
The standard deduction for 2024 is $14,600 for single filers and $29,200 for married couples filing jointly. The top marginal tax rate remains 37 percent for taxable income exceeding $609,350 for single filers and $731,200 for married couples filing jointly.
IRS Direct File Expansion
The IRS has expanded its Direct File program for the 2025 filing season, allowing eligible taxpayers in participating states to file their federal returns directly with the IRS at no cost. The program, which piloted in a limited number of states for the 2024 filing season, now covers additional states and income situations. While Direct File is designed primarily for straightforward individual returns, its expansion reflects the IRS's ongoing effort to reduce filing barriers and improve the taxpayer experience.
For business owners with complex returns involving partnership income, rental activities, or other pass-through items, Direct File is unlikely to be suitable. These taxpayers should continue to work with qualified tax professionals who can navigate the interactions between entity-level and individual-level tax provisions.
Practical Reminders for Business Owners
Business owners who operate through partnerships or S corporations should prioritize getting their entity returns filed by the March 17 deadline. Late filing of partnership and S corporation returns triggers penalties of $220 per partner or shareholder per month, up to 12 months. For a 10-member partnership, a single month's delay can result in a $2,200 penalty. Filing an extension before the deadline avoids this penalty but requires that the business have its financial records in order to make an accurate estimate of income and make any required payments.[2]
Reviewing the accuracy of all information returns, including Forms W-2, 1099, and K-1, before filing is essential. The IRS's automated matching programs flag discrepancies between information returns and filed tax returns, and resolving these discrepancies after the fact is time-consuming and can trigger additional scrutiny.
For taxpayers who made estimated tax payments throughout 2024, verifying that the total payments match the amounts credited on the IRS's records prevents delays in processing and potential notices. Taxpayers can check their estimated tax payment history through their IRS Online Account.
Planning Ahead
The 2024 filing season is also an opportunity to assess whether current tax planning strategies remain optimal. Reviewing the completed return with a tax advisor can identify opportunities for improvement, including adjustments to estimated tax payments, changes to retirement plan contributions, and modifications to entity structures that could reduce the overall tax burden in future years. The information gleaned from the 2024 return provides the foundation for effective tax planning in 2025 and beyond.