It happens to us all. Work, family and other obligations all seem to pile up right before the tax deadline. Rather than increasing your stress level, why not file for a business tax extension? You will thank yourself later.
Get More Time to Prepare
Business owners always have a lot on their plates. Between making payroll and keeping customers happy, finding enough time to file a tax return before the yearly deadline can be challenging.
Even if you are able to pull everything together at the last minute, there’s a good chance you may miss a minor or major detail.
A tax extension for businesses gives you an extra six months to fix any missing or inaccurate information on your return.
Avoid Costly Penalties
If you can’t meet the tax deadline in 2017, you can avoid hefty fines by filing for an extension that includes an estimated payment of what you might owe the government.
If you fail to file a business tax extension, the IRS has the authority to:
- Impose costly penalties.
- Charge interest on underestimated tax bills and late or incomplete returns.
IRS penalties may be as high as 25 percent of the taxes due.
Filing a tax return later also allows business owners to reap the benefits of retroactive changes to the tax law without the extra work and expense of filing an amended return.
When You Must File for a Business Tax Extension
The IRS makes filing for a business tax extension easy. All you have to do is ask for it. But, they require you meet their deadline in order to receive the six-month grace period.
- The deadline for corporations, including S-corporations, is usually on or about March 15 depending on the year.
- Partnerships, LLCs and sole proprietorships typically have until April 15 to file their tax extension.
- As long as you file by midnight of the due date, your request will be considered on time.
A tax extension for businesses grants C-corporations, S-corporations, and certain LLCs an extra six months to submit their return. Partnerships, trusts, certain estates and some LLCs are eligible to receive an extension of up to five months.
Businesses can expect to receive a response from the IRS within 24 hours. State tax regulations may vary.
You can view the business tax exemption 2017 form here.