Top 10 Questions about Business Tax Extensions – Answered

Some of the commonly asked questions related to business tax extension  is discussed in this article. It includes queries related to filing for businesses with no income, how the IRS approves or rejects the tax extensions, and other basic questions. Check out the questions whether your queries are answered?

  1. Do I need to file the tax return by the due date even though if I do not owe any taxes?

Though you do not owe income tax, according to the IRS you should file your small business and the tax return to the IRS by due date April 15th. You should file a tax extension on or before the due date when you may not be able to file the tax return by the actual due date.

  1. When I cannot file the taxes by the first tax extension due date, can I file the taxes by the second one?

No. IRS provides only six-month extension time to the tax payer. But you must pay the taxes by the actual due date, the extension is only for filing the tax returns.

  1. Should I need to provide a reason for requesting the extension to file my business taxes?

No. You no need to give any reason for requesting the extension. You can file the tax extension and it is automatic. At times the IRS rejects the tax extension when they find any errors or if the taxpayer information does not match the records.

  1. How to file for a tax extension with my state? Does the federal extension of time application count for my state too?

Each state handles the tax extensions differently. To know more information, ask your state taxing authority in order to file the tax extension for a state tax return.

  1. Can I file the extension after returning from my vacation? My vacation date is on April 15th.

In that case, you need to file the tax extension application before leaving for the vacation. As a taxpayer you can file the extension before the due date, but not later than that. The deadline to apply for tax extension is the tax return due date.

  1. Whether I can file an extension on a partnership or corporate tax return as same as the personal returns?

For corporation tax returns, the form to request the tax extension is Form 7004. This should be filed by the tax due date and the due date for partnership is March 15th and for calendar year-end corporations is April 18th. The tax extension is for six months.

  1. Can I file the tax extension application through online?

Yes. The online process for filing the extension is simple, fast and secure.

  1. Can I E-file my tax extension?

Yes. You can opt for IRS Efile option to file your extension or you can use the tax service providers like to prepare and file your extension. The service by the providers also help you to estimate the tax dues.

  1. When I file an extension for business tax return, should I need to extend my personal return too?

When you are filing an extension for your business with Schedule C income, then it is automatic to file for both personal and business returns. Here you no need to file another extension request.
When you are filing an extension for the business taxes for a LLC, partnership, corporation or S corporation, then you need to file an extension for the personal tax return also. As some of the information in the business return should be added in your personal return.

  1. What to do if my tax extension request is rejected?

Most of the cases, the IRS does not reject any tax extension requests. Most common reason for rejection are:

  • If there is an error in the application form or
  • If there is a change in the information that the IRS is not aware of. For instance, the business contact address.

When your tax extension request is rejected, you can still re-apply. But when you did not file an application until the tax due date, you will get the IRS penalties and fines.  The tax payer has a short grace period to re-file the extension. File the extension early, hence when the application is rejected, you can be able to re-file the tax extension request before the tax due date.