Tax deadlines always approach quickly. One moment you’re ringing in the New Year, and the next you’re completely frazzled, running around trying to find missing receipts and panicking about the looming tax deadline. Luckily, there is a way to alleviate the stress. Did you know that as a business, you can extend your filing deadline? That’s right. All you have to do is estimate the taxes you owe and then fill out the extension application.
Note that the tax filing deadline for most corporations is March 15th. However, most partnerships, LLCs, estates, and trusts have until April 15th in most tax years to file their tax return or a tax extension.
You’re a business owner
Getting a tax extension can be very simple! In order to estimate your current taxes, we recommend reviewing your tax situation from the year prior, and doing some simple math to determine what you are likely to owe this year (if anything). In your estimation, you should include any tax payments you have already made during the year. Once you have this figure, you simply fill out the application (Form 7004) and submit it.
Why do I need to estimate?
Because you aren’t planning to file your full tax return by the original deadline, the extension allows you to file up to five or six months later (depending on the type of business entity). While your filing period is extended, the deadline for tax payments is not extended. For this reason, it’s important that you estimate the amount owed and pay it by the deadline. After your extension is submitted, you can prepare your tax return at your own pace, as long as it’s filed by the extended due date (usually either September 15 or October 15). If it turns out that you owe additional tax once your full tax return is prepared, you can pay the difference at that time. But note that the IRS requires you to pay at least 90% of your actual tax liability by the original deadline, or you will be charged a late payment penalty.
You can do it all online
Not only can you obtain and fill out the business tax extension application (Form 7004) online, but you can also pay your tax balance online too. At TaxExtension.org, we make it easy to get the extra time you need to file an accurate return by creating a one-stop shop for your extension needs.
Avoid additional penalties
If you neglect to file your tax return on time, you are subject to a 5% per month late filing penalty on the outstanding tax, for up to five months. Simply filing a tax extension will help you avoid the late filing penalty.
Our online e-filing system is secure and approved by the IRS. As an Authorized IRS e-file Provider, we are dedicated to protecting your sensitive data. Any information that you provide is kept private and shared only with the IRS.
Where to start?
The first step to filing an extension is to gather all your basic business information. This includes your business name, address, EIN, and estimated tax liability. (You should note that the IRS won’t reject your extension if your estimated tax liability is incorrect.)
Tax season does not have to be stressful anymore! If you think that you won’t be able to file your taxes on time, take a few minutes to submit an extension request online. A tax extension means you can avoid late filing penalties and it gives you peace of mind. Plus, the extra time means you can make sure you are claiming every tax break that you qualify for.
Don’t hand over any more of your hard-earned money to the government than you need to. Visit us online today at TaxExtension.org to discover how easy it is to file for an extension and save yourself from the stress and anxiety of tax time.