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A cash crunch at the GNOME Foundation

A cash crunch at the GNOME Foundation

Posted Apr 14, 2014 18:04 UTC (Mon) by dlang (subscriber, #313)
In reply to: A cash crunch at the GNOME Foundation by ebassi
Parent article: A cash crunch at the GNOME Foundation

I think you are mistaken

As it was explained to me when I filed for a business license, the deadline for taxes is 3.5 months after the end of your fiscal year. If it ends Dec 31 (like it does for individuals), then taxes are due April 15. And even then, starting your budget in Jan is really too late (it means you are without any budget from Jan 1 until you decide.

But if you end your fiscal year on Sept 30, I believe you have to file your taxes Jan 15.

The reason corporations have their fiscal year end sometime other than Dec 31 is to be able to work on the end-of-year things (like taxes) sometime other than when the vast majority of other people are doing the same thing.

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A cash crunch at the GNOME Foundation

Posted Apr 14, 2014 18:23 UTC (Mon) by ebassi (subscriber, #54855) [Link]

> I think you are mistaken

considering that I've just talked about this with our treasurer and the fact that we had this discussion over multiple months in the board of director meetings, no: I'm not mistaken.

we did file for an extension (like we often do), given the delay in building the final budget.

we also have a *rough* budget, but by virtue of being the rough budget, it operates on various assumptions (i.e. same or fewer hackfests to sponsor, same income from advisory board members); for this reason, we have been careful in approving expenses during the time between December and now — hence why we were able to keep this under control, and why we're going to go back in the black by the end of the month.

A cash crunch at the GNOME Foundation

Posted Apr 14, 2014 19:42 UTC (Mon) by rahvin (subscriber, #16953) [Link]

Is your business a non-profit? The rules are different for non-profits, in fact one of the challenges of being a non-profit is finding someone with the accounting expertise to handle the financials.

For profit business (anything bigger than a sole proprietor in the US) don't pay taxes at the end of year either regardless of when their fiscal year is, they pay taxes quarterly (and IIRC if they make enough money the tax payments per year goes up to monthly), and if they don't make the payments the IRS does very mean things to them. Now paying taxes and filing your tax returns are two entirely different things. Paying estimated taxes are required with very nasty penalties but actual filing of the paperwork is a deadline altogether different.

Everyone's tax returns (including businesses) are do on the 15th of April, but businesses almost as a rule of thumb file for extensions to match their fiscal year to make it easier to fix the accounting up. On the other hand some kinds of taxes can be due as you said a few months after the fiscal year, such as county property taxes or business license taxes, etc, but I'm not aware of any IRS deadline that is tied to a company created fiscal year partly because companies can and do change their fiscal years.

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