How Do I Get A Business Tax Extension?

How Do I Get A Business Tax Extension?

Filing taxes is no easy job, and neither can it be completed in a single day. You need to take the time to sit and file your taxes as the due date approaches, and if for any reason you think you might not be ready just yet, there is good news for you. You can extend your deadline to file your taxes by 6 months. Although this doesn’t mean that you don’t still have to pay what you are due, this is only to extend the date to submit your tax returns. You can pay an estimated figure, and if you have overpaid, the balance amount will be returned to you.

Here are the simple steps to follow when you want to request an extension on your deadline:

1. Download and Submit the Application Form

There are two types of application forms for an extension, and you can choose the one that suits your business.

For Partnerships and LLC’s filing form 1065, US Return of Partnership Income and filing form 1120S, US Income Tax Return for an S Corporation

For sole proprietors and single-member LLC’s filing Schedule C, Profit or Loss from Business and C Corporations filing form 1120, US Corporation Income Tax Return.

It is important to remember that the IRS can charge a penalty if the taxes are paid beyond the deadline. They must be paid along with the request for filing taxes.

2. Estimate the Taxes You Owed In the Previous Year

This extension will not get you out of paying the taxes you owe. It is recommended to overestimate the amount you think you owe as you will get a refund once your returns are filed, and you will avoid having to pay interest and a late penalty.

3. Check the Extension Due Date

Depending on the nature of your company, you can check which extension date applies to your business.

4. Submit Your Extension Request Form and Payment

Complete the extension request form, which is quite simple. It doesn’t require you to explain why you need the extra time.

Next, submit the extension request form along with the payment. There are a few ways that you can make the payment:

  • • Electronic payment
  • • Through a tax professional or using a tax software
  • • Mail a check to the IRS along with a paper file form

5. Check the Extension Date and Make Sure To File Your Tax Return by This New Date

Once you have submitted your request form, you usually get a six months extension period within which you have to file your taxes.

Depending on your business, you will be given a deadline. If this date falls on a weekend or a public holiday, the deadline will then be moved ahead to the next working day.

If you need a professional to help you manage your taxes, contact Business Rocket and schedule a consultation today.