Sole Proprietors' Tax Returns

If you are a sole proprietor, you must file Schedule C (or Schedule C-EZ if you qualify), Profit or Loss From Business, with your Form 1040, U.S. Individual Income Tax Return, on an annual basis, to report your business income and deductions. Sole proprietors are also required to file Schedule SE, Self-Employment Tax, with their Form 1040 as well. There may be other forms and schedules required, depending on the specific nature of your business activities during the year.

For calendar-year taxpayers, the filing and payment of tax due date for these returns and schedules is April 15. Note that sole proprietors can't be fiscal year taxpayers, absent extraordinary circumstances and IRS approval.

If you want an automatic six-month extension to file your 2014 return, you can file Form 4868, Application For Automatic Extension of Time To File U.S. Individual Income Tax Return, by April 15, 2015. However, you must pay any tax you estimate will be due by April 15 or you may be subject to interest and penalties on overdue taxes. Your actual return would then be due on October 15.

Warning Remember, the automatic extension only applies to the filing of your return, not to the payment of any tax that may be due. You must pay any tax that is due by April 15th of 2015, or you may be subject to interest and penalties on the overdue taxes.

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