File Extension for Tax Return
The tax season can come up quickly if you aren’t paying attention. Here is how to file an extension for a tax return.
Before we talk about an extension, a vital point needs to be made. While the IRS will let you file an extension without much problem, the extension is only for the tax return. The IRS does not allow you to extend the time to PAY the taxes. They are still due on the relevant date. If you fail to pay up in time, you will have to pay penalties and interest on the amount you owe.
As you probably know, the IRS requires you to file personal tax returns on April 15 each year for the proceeding years financials. You can get an automatic extension by filing form 4868 with the IRS. The extension is automatic and gives you six months to get the returns together. Again, this is not an extension to pay the actual money due.
If you run your business as a corporation, the magic due date for tax filings is March 15. You can get an automatic extension by filing Form 7004 or using an online filing service. Again, this is not an extension to pay the taxes due, just to file the tax return. The automatic extension gives you an additional six months to file the return.
LLCs can be taxed different ways. If you have two members and are taxed as a partnership, you must file tax returns by April 15. An automatic extension of three months can be obtained by filing Form 8736. If you are the sole owner of an LLC, you pay taxes through your personal tax return. Just follow the extension rules for personal taxes and you’ll be fine.
If your business is a partnership, you are required to file tax returns by April 15. You can use form 8736 to obtain a 3-month extension. You will actually want to have the partnership taxes done well before this as the partners require K-1 forms from the partnership before they can fill out their personal taxes.
The above guidelines only deal with federal tax returns. Some states consider the federal extension as an extension of the state filing requirements. Other states do not. You’ll need to check your state for the specific guidelines.