When you need more time to file your business tax return, an extension gives you some breathing room. The Internal Revenue Service (IRS) grants individuals and businesses an automatic six-month extension of time to their federal income tax returns beyond the original due date.

This extension gives you more time to finalize your numbers and gather other necessary financial information. But it’s important to remember that a tax extension doesn’t give you more time to pay any taxes owed. You still need to estimate and pay your taxes by the original deadline to avoid penalties and interest.

In this guide, we’ll cover everything you need to know about extending your business tax return, from the forms you use to request an extension to the business tax extension deadline and what happens if you’re still not ready to file.

What Forms Do You Need to File for a Business Tax Extension?

The form you need to file to request a business tax extension depends on your business structure.

• Sole proprietorships and single-member LLCs use Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
• Partnerships, multi-member LLCs, and corporations use Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns.

Both forms are pretty simple to fill out, as far as IRS forms go. You simply provide the entity’s name, employer identification number (or Social Security number, in the case of a sole proprietorship), address, and the tax year being extended.

On Form 7004, you’ll also need to enter a code telling the IRS what type of business entity is requesting the extension.

Then, you provide your estimated tax liability for the year, any estimated tax payments you’ve already made, and the amount you’re paying with the extension request.

As long as you file the form before the tax filing deadline, the IRS will automatically approve your request — there’s no need to wait for approval.

State Extension Forms

In addition to requesting an extension on your federal income tax return, you may need to file for one or more state tax extensions. Each state has its own procedures and forms for tax extensions. Some might grant an automatic extension if you filed a federal extension, while others have state-specific forms. For example, Oklahoma uses Form 504-C for all business entities, but California businesses use Form FTB 3537 for LLCs, Form 3539 for corporations, and Form 3538 for partnerships.

It’s a good idea to check with your state tax authority or work with an experienced tax advisor to ensure you comply with state-specific requirements.

When Is the Deadline for Business Tax Returns?

The business tax deadlines depend on your business structure and the type of return you file. Here are some important business tax deadlines:

Sole Proprietors and Single-Member LLCs

• Original Deadline: April 15
• Extended Deadline: October 15

Partnerships and Multi-Member LLCs

• Original Deadline: March 15
• Extended Deadline: September 15

S-Corporations

• Original Deadline: March 15
• Extended Deadline: September 15

C-Corporations

• Original Deadline: April 15
• Extended Deadline: October 15

If any of these dates fall on a weekend or holiday, the deadline shifts to the following business day.

Also, your tax deadlines will vary if your corporation operates on a fiscal year. The due date to file your return is the 15th day of the fourth month after your fiscal year ends. Requesting an extension still gives you six more months to file your tax return (but not to make your tax payment).

For example, if your fiscal year ends on October 31, you must file your return or request an extension by February 15. Your extended due date would be August 15.

And just because the IRS likes to make things a little more complicated, a special rule applies to corporations with a June 30 fiscal year-end. If your fiscal year ends on June 30, the original due date for Form 1120 is the 15th day of the third month after the end of your tax year.

Extended Your Business Tax Return? Don’t Wait to File!

When you extended your business tax return back in March or April, September and October likely seemed far away. However, you should make every effort to file as soon as possible rather than waiting until the September or October deadline. That extended due date will be here before you know it, and timely filing (even on an extended timeline) offers several benefits.

Compliance and Accuracy

Filing early ensures you have plenty of time to review your tax return thoroughly, reducing the risk of errors or missing information. Accurate tax filings help you avoid potential audits and penalties.

Pass-Through Entities and K-1s

Pass-through entities such as partnerships, S-corporations, and multi-member LLCs must provide Schedule K-1s to their shareholders, partners, or members. These individuals need these K-1s to file their own tax returns by the October 15 extended due date for individual returns (Form 1040).

Waiting until the last minute and filing your business taxes on September 15 only leaves a few short weeks for your shareholders, partners, and members to file their personal returns before the deadline.

Avoiding Last-Minute Complications

Filing taxes at the last minute can lead to complications like missing documents or technical issues with electronic filing systems. Trying to resolve these issues at the eleventh hour is stressful and could even result in missing the deadline and owing a late filing penalty.

Tax and Financial Planning

Timely tax filing gives you a clear picture of your tax liabilities and financial standing. For example, if you underestimated your tax liability and had a big surprise tax bill, you have time to increase your estimated tax payments before the next tax season. On the other hand, if you received a large tax refund, you might want to reduce your next quarterly tax payments or adjust the federal income tax withholding on your payroll taxes.

Minimizing Penalties and Interest

Again, while tax extension allows more time to file an income tax return, it doesn’t extend the time to pay taxes owed. When you file early, you can promptly address any discrepancies in your quarterly tax payments, minimizing potential penalties and interest.

Get Help with Your Business Taxes

Filing for a tax extension provides more time to ensure your business income tax return is accurate and complete. However, it is essential to use this time wisely and not wait until the extended tax deadlines in September or October.

By filing early, you can avoid complications, stay on the IRS’s good side, and keep your partners or shareholders happy.

If you’re ready to take a proactive approach to tax filing and position your business for better financial management and tax planning, schedule a free consultation with PaulHood. We can provide expert tax guidance tailored to your goals so you can focus on running your business.

Business Tax Deadlines FAQs

Dealing with business tax deadlines can be overwhelming. Below are answers to some common questions to help clarify the process.

How long is an extension for business taxes?

An extension typically extends the original filing deadline by six months. For example, if the original partnership return deadline is March 15, the extended deadline will be September 15.

What happens if you miss the business extension deadline?

If you miss the extended deadline, the IRS may charge you late filing penalties and interest on any unpaid taxes. Filing as soon as possible minimizes these penalties and helps you avoid further complications.

Can an LLC file a tax extension?

Yes, an LLC can file a tax extension. Single-member LLCs use Form 4868, while multi-member LLCs use Form 7004 to apply for an automatic extension of time to file a federal tax return.