August 4, 2015

Q&A: How to file a corporate business income tax extension with the IRS

The IRS allows businesses to file an income tax extension which provides additional time beyond the original deadline for filing income taxes. For most business partnerships, the original filing date is April 15th; while most corporations, including S-Corps and C-Corps have their taxes due on March 15th. A corporate business income tax extension provides an additional 5 or 6 months to file.

All businesses owners other than sole proprietors should submit an IRS Form 7004 to request an income tax extension. Since all business activities are reported on a sole proprietor’s personal tax return, they will need to submit a Form 4868 instead. You do not need to provide a reason for requesting a tax extension, but your income tax extension request must be submitted by the original due date of your taxes (March or April 15th). Business tax extensions are automatic and only rejected if there is an error in the information provided on the Form 7004, such as an incorrect tax ID number.

A corporate business income tax extension does not give you extra time to pay your taxes, it only provides additional time to fill out your tax forms. You are still expected to pay any taxes you may owe by the original due date. It is best to pay your taxes when you submit your tax extension to avoid IRS penalties and interest charges.

A business tax extension can be filed electronically or by mail, but must be filed online by midnight or postmarked by the original tax deadline.

If you filed a business income tax extension this year and need help preparing your taxes, Vyde can help.

Q&A: Can I file a second IRS tax deadline extension for my personal taxes?

Up until 2005, a tax deadline extension granted an individual or business an additional four months to file taxes, beyond the April 15th filing deadline. If taxes could not be filed within that time period, a second extension was available and granted an additional two months to file taxes. However, the IRS has since done away with this rule. Second IRS tax extensions are no longer available for business taxes, and are only available in specific circumstances for personal taxes.

If you filed a tax deadline extension by April 15th, your new deadline to file personal taxes is October 15th. While a tax deadline extension grants additional time to fill out and submit your tax forms to the IRS, it does not grant additional time to pay any taxes that may be due. All tax payments must be made by April 15th, and are generally submitted with the tax extension form.

In special circumstances, the IRS grants individuals a second IRS tax deadline extension for personal taxes. These circumstances include:

Members of the US Military: Members of the Armed Forces who are serving in a combat zone or contingency operation at the time their taxes are due, are eligible for a second personal IRS tax deadline extension of up to six months. The tax extension begins once their deployment ends.

Taxpayers Living Outside the US: In certain situations, taxpayers living outside the United States are granted an additional two month tax deadline extension for their personal taxes. This request must be made by October 15th, and can be done by filling out the appropriate second tax extension form on the IRS website.

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Day: August 4, 2015

Q&A: How to file a corporate business income tax extension with the IRS

Q&A: Can I file a second IRS tax deadline extension for my personal taxes?

In special circumstances, the IRS grants individuals a second IRS tax deadline extension for personal taxes. These circumstances include:

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