Filing Form 4868 for a Small Business Tax Extension

When you realize that your tax papers are not ready and mid-April is approaching to file the business income tax return, you can file IRS Form 4968. Even the IRS understands the situation of the taxpayer and offers the automatic extension of time to file the tax return. But, IRS 4868 Form is used for an automatic extension to file the personal tax return.Everything Need to Know about Filing a 4868 Tax Extension

You may use this form when you report Schedule C along with your personal return as a sole proprietor or as a limed liability company’s single member as the business is bonded with the personal income. Here, you no need to file a business extension separately else you need to file IRS Form 7004.

What is the Purpose of Form 4868? 

When you file Form 4868, you will be granted a six month of extension, until October 15th. The tax form 4868 deadline will be pushed back few days from April, 15th when it comes on a holiday or weekend, hence the extension will be six months from April due date if the tax returns were due in any given year.

IRS Form 4868 should be reported on or before April due date except you were out of the United States at that time, or you live and your business is in Puerto Rico or Outside the United States. In such case, you got the time until June 15th for the tax extension.

How to Complete Form 4868 for Small Businesses?

IRS Form 4868 is one of the shortest form by the IRS standards. It just requires the following :

  • Name of the applicant and the spouse name of the applicant when married and filing a joint return.
  • Address and the Social Security Number
  • Total tax liability estimate for the year.
  • Total payments that are paid towards the tax obligation previously.
  • The owed balance.
  • The paying amount along with the extension request.

You can submit the Form 4868 electronically, and the IRS sends back the electronic acknowledgment of receipt.

You may pay part or all of the estimated tax amount through direct debit at no cost by accessing IRS Direct Pay Online. You can also pay by credit or debit card on the IRS website or by calling with the small service charge. If not you can print out the Form 4868, complete the form properly and mail it to the IRS.

IRS Form 4868 extends only the time to file the tax returns but does not extend the to me to pay the owed tax amount. That tax balance will be still due by April. The IRS form 4868 Penalties and interests will be charged for late payment based on the remaining balance that you owe after that date. Filing the 4868 form on time fetches good credit, else you may lose money towards the IRS penalty amount. Hence, file the extension on time, pay the owed tax amount and avoid the IRS penalties