Many companies are scrambling to wrap up their paperwork while also focusing on growing their business. In the midst of all this, the holidays have come and gone, and tax season is now here.
Take advantage of a tax extension. It will give your business 5 or 6 extra months to file taxes. It’s easy to e-file a tax extension, and it gives you extra time to focus on your business priorities. The deadline for filing business taxes is typically March 15 or April 15 (depending on the type of business entity). To request a business tax extension from the IRS, you must file Form 7004 by the original due date of your tax return.
Despite some common misconceptions, getting a tax extension does not mean that the IRS will come looking to audit you. In fact, a tax extension could decrease your chances of an audit because you are no longer filing during the rush of tax season (when most audits occur). An extension simply gives you more time to get your paperwork in order so you can be sure all the necessary information has been provided. The IRS will not penalize you for filing a tax extension.
Here are some tips on filing a tax extension using form 7004 that can benefit your business during tax season.
Requesting a Tax Extension
IRS Tax Form 7004 is an application you can file to get an automatic tax extension for certain business-related taxes, information, and other returns. You must provide the business data the IRS needs in order to file a tax extension. Include your business name, address, and Tax ID number. Next, you must estimate your tax due, which is your total income tax liability minus any tax payments already made. (If you create a rough draft of your tax return, you’ll be able to see whether you will have to pay any taxes or get a refund.) Note that is just an estimate, and the amounts you provide will not affect whether your extension is accepted or rejected. The extension will be applied to your filing deadline only, however, you are still required to pay any taxes owed on time.
Benefiting from Tax Extension
There are many benefits to obtaining a tax extension. One of the many reasons to file a tax extension is that can save you money by giving you more time to plan out your tax refund. An extension also gives your accountant (or yourself) the extra time to claim all the tax breaks you qualify for. There are no eligibility requirements to get an extension – you don’t have to sign the form or provide a reason for your request. That’s why the IRS calls them automatic tax extensions.
It’s important to remember that an extension gives you more time to file, not more time to pay. However, if you file for a tax extension, you will be able to avoid the hefty late filing penalty that the IRS charges on all late returns.
Easily E-file Form 7004
The IRS website provides a list of Authorized e-file Providers, which includes TaxExtension.com (listed as BANKS.COM INC). That means we are officially permitted to electronically send tax forms to the IRS on behalf of taxpayers. By using an Authorized IRS e-file Provider, you can feel safe knowing that your personalized data is secure.
You can e-file a business extension at TaxExtension.com in less than 10 minutes. Our easy-to-use website helps you fill out Form 7004 in a few simple steps. First, provide your basic business information. Second, estimate your tax liability. And third, decide if you want to make a tax payment with your extension request. Then once you submit your extension, we will electronically transmit it directly to the IRS for approval. It’s as easy as that.
Tax extensions are only every rejected due to an invalid business Tax ID (EIN) that doesn’t match what the IRS has on file. So as long as you submit your tax extension form 7004 accurately and on time, you will receive an automatic tax extension.