Sometimes things come up or need to be postponed while further information is gathered and this can include filing your business taxes. You might be waiting on information or just trying to buy time to come up with the money for your business taxes if you haven’t been setting some aside all year long. Or you might just need a bit of a break.
What ever the reason here is how you can file for an extension for your business taxes:
If there is any way you can buckle down and assemble your business’s tax return on time (by March 15), that is usually recommended. While getting extra time to file is convenient, it can occasionally lead to extra penalties and interest if you do not pay the tax due on time, or if you forget to file by the extended deadline. Incurring interest and late fees will mean a higher tax payment for you in the long run.
On the other hand, sometimes there is simply no way you can file your business tax return by the original March 15 deadline. In that case, you should definitely request a business tax extension using IRS Tax Form 7004. Make sure the tax extension request is submitted by the original filing due date of your business tax return (usually March 15).
How to Request a Business Tax Extension
IRS Tax Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns) is the form most businesses will use to request a Federal tax extension. In the past, taxpayers were required to submit a thorough explanation for why they needed a tax extension — but the IRS removed this prerequisite and no longer needs a reason.
Making it so you don’t need a reason not only makes it easier to request an extension but much faster as well. So if you are one of the business owners looking for an extension, you have about 4 days to get one into the IRS.
Will you be filing your taxes on time for your business this year or filing a request for an extension?