If you’re not ready to file your annual return when April 15 comes around, requesting an extension may be the best move for your business. Many businesses end up requesting extensions each year, whether because they are still waiting on important forms or they are still getting all of their information in order.
If you’re looking to file an extension for your business taxes, the process is fairly simple.
Do I Need to File an Extension? Will It Reflect Poorly on My Business?
Filing an extension does not necessarily reflect negatively on your business. The more complex your finances, the more time it takes to prepare for tax time. So if you need the time, there’s no shame in taking it. It would be a much bigger misstep to simply file late.
Form 7004 vs. Form 4868: Which Form Do I Need for My Business?
When you’re ready to file for an extension, you will submit either Form 7004 or Form 4868 to the IRS. Single-person companies typically file using Form 4868, while multi-person LLCs and S Corps typically use Form 7004. Your accountant or a tax filing software can often handle extension filing on your behalf.
E-Filing for a Tax Extension
The easiest way to file for an extension is online. You can e-file for an extension for free using Free File found on the IRS website.
Is My Tax Extension Form Automatically Accepted?
Whether you e-file or file a paper form, your extension is automatically accepted. If you submit your extension form after your filing deadline, however, your extension will not be granted and you will be considered late.
When is My New Tax Deadline After Filing for an Extension?
An extension usually grants you an extra 6 months to file your taxes. If you filed for an extension for your taxes originally due April 15, for example, your new tax deadline will be October 15. Due dates vary based on entity type and the date the books close. If any of these deadlines fall on a weekend or holiday, your deadline will be moved to the following business day.
When is My Payment Due When I File for a Tax Extension?
While a tax extension buys you more time to file your returns, it does not buy you more time to pay your taxes. Make sure you make your tax payment in addition to filing for an extension by the appropriate due date to avoid any penalties or interest.
File Your Extension
If you prefer not to file online, there’s always the old fashioned way—mailing in your extension request. Simply print your form, fill it out, and mail it in well before the due date to ensure it meets the deadline.