Tax Extension for Small Business by Filing Form 4868

IRS 4868 extension is used for filing the 6-month automatic extension time application of personal tax returns. This 4868 form includes Schedule C for the single-member limited liability company sole proprietorship. It is not necessary for you to file separate extensions for business in such situations. The profits accumulated from the business get included in the total tax owed by you, therefore you include calculations of the business tax loss or profit along with other calculations for personal tax return. With a 4868 tax extension, you get an automatic extension time of 6 months for filing your personal taxes until 16th October.

If you are unable to file individual taxes before the due date, you must file a 4868 tax extension for 6 months extension of time from the due date of the tax return. You need to get this form, fill it up accordingly and then submit it to the IRS. In the form, you must include your contact address and your name, estimated total tax owed for the year, due balance, total payments made, and the amount being paid.

Different Types of Small Businesses using Forms 4868 Tax Extension

Small businesses generally calculate their business loss and profit for income taxes and then include the information on personal tax returns. There are different forms that need to be used by small businesses for filing their tax returns with extensions. Due to the fact that small businesses generally file their tax returns along with personal tax returns, the due date generally remains the same as personal tax returns the due date which is 18th April (April 15th is Saturday).

  • · Single-member LLCs and sole proprietorships make use of Schedule C, Form 4868 instructions.
  • ·         Form 1065- Return of Partnership Income Instructions is used by multiple member LLCs and partnerships.
  • ·         Multiple-member LLC members and partners also make use of Schedule K-1 instructions
  • ·         Filing extensions for partnership tax returns requires filling and submitting form 7004.

Small businesses that look forward to filing tax extensions should always make it a point to use the services of a tax preparer for filing the extensions. This is because filing tax extensions for small businesses can be complicated and the services of a tax preparer might help in doing all the calculations easily and in coming up with the right amount of taxes due. However, when making the choice of a tax preparer, a CPA or an enrolled agent, it is important to go through the qualifications and the experience of the agent. This will help organizations in ensuring that there are no mistakes made in the tax extension request procedure. It is also advisable for businesses to take the services of Tax2efile.