IRS Moves Business Tax Extension Deadline to September 2009

Savvy taxpayers who file for business tax extensions may notice that something's a bit different this year. Until now, both business and personal income tax extensions have been due on October 15 - effectively giving business taxpayers an extra month, since their standard deadline is March 15.

However, there's a reason the standard deadlines are separate, and so the IRS has decided to keep that going. The issue is: many business owners can't calculate their own income taxes until they've completed their business tax returns. The earlier deadline helps ensure that all owners and partners have accurate information when it's time to file their personal income taxes.

Until now, that hasn't been the case with tax extensions; both business and personal returns were due on October 15. However, in July 2008, the IRS moved up the deadline for businesses that have filed a tax extension to September 15, 2010. This ensures that the system remains consistent for the standard and extended deadlines, and helps tax extenders stay on top of their various returns.

Does This Affect My Business Tax Extension?
It could! The new deadline applies predominantly to Schedule K-1, which covers income from standard business profits, partnerships, estates, trusts, and S corporations. The new deadline also applies to these forms:

Form 1041, U.S. Income Tax Return for Estates & Trusts
Form 1065, U.S. Return of Partnership Income
Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

Now, there's nothing stopping a business owner or partner from filing their business tax returns early, regardless of the deadline. But if, like many businesses, you rely on other parties to provide required tax forms, you may need that early deadline to light a fire under them. (And, if we're being honest here, under you too!) File a business tax extension online this year and get the time you need to have it all figured out!