Most people would rather be doing something else besides filing their taxes, but since tax filing is a necessity, it is best if people get their taxes filed correctly on time (or earlier). Sometimes things get in the way, though, and this does not happen. If people do not have enough time to file their taxes before the tax deadline of April 15, then filing at a later time is possible if people follow the right steps. Here is how to file a tax extension for personal or business tax purposes.
Filing a Personal Tax Extension
If a person is filing individual income taxes, there are a few ways he or she can get a tax extension. IRS Form 4868 is the form to extend the personal tax filing deadline. This form can be filed electronically via e-file or through traditional paper filing. If April 15 falls on a regular weekday (not a holiday or weekend), tax extension form 4868 needs to be filed on or before April 15. If April 15 is on a holiday or weekend, then tax extension form 4868 needs to be filed by the following Monday. People will have until October 15 to file their tax returns once the tax extension form is properly filed.
Filing a Business Tax Extension
A corporation, S-corporation, partnership, or multiple member limited liability corporation (LLC) can get an extension for their tax filing by using IRS form 7004. Filing form 7004 can be done through e-file or paper filing. Once the extension is granted, a business has up to 6 extra months to file its tax return. It is important that the business tax ID number is included on form 7004 and that the appropriate tax code is used. (For a partnership or multiple member LLC, form 1065 is the annual tax return for which the filing deadline can be extended. For a corporation, form 1120 is the annual tax return. For an s-corporation, form 1120S is the annual tax return.) Businesses should calculate their revenue for the tax year as well as any tax payments owed, since they will still need to pay taxes on time, even if an extension is granted.
Important Things to Know About Filing Tax Extensions
Filing a tax extension does not give someone an extension for payment of either personal taxes or business taxes. A tax extension will only move your filing deadline. It is recommended that people apply for their extension before the tax deadline. Once a tax extension deadline is granted, no further filing extensions can be given. Failure to file taxes or pay the owed taxes before the extension date could result in a monetary penalty.