Do you need more time to file your business tax return this year? That’s why there are tax delays. For business owners, filing taxes can be a difficult job, but in 2023, a business tax extension will be an important tool to help you handle the process better.
This guide will show you how to get an extension, what its benefits are, and how to apply for it step by step. With this knowledge, you can confidently handle your tax responsibilities and make sure your business has a good tax season. Read on to find out how to file a tax return extension for a business tax return this year.
2. What’s a Business Tax Extension?
Businesses that are sole proprietorships, partnerships, LLCs, or companies can file with the IRS for a six-month business tax extension to get more time to finish their tax return without being fined. Depending on how your business is set up, you need to fill out one of the following forms:
- Form 4868 is used by sole proprietorships and LLCs with only one person.
- Form 7004 is used by partnerships, LLCs with more than one person, and corporations.
Most of the time, if you ask for more time by the date, you automatically get it. You can ask for a deadline extension online (if you e-file with TaxAct, we can help you with this) or by mail.
3. The Date to Request a Business Tax Extension
The date for requesting a business income tax extension also depends on what kind of business you have:
- For the 2022 tax season, returns for sole proprietorships, LLCs with more than one member, and corporations must be made by April 18. With a delay, the new date is Oct. 16, 2023.
- March 15 is the deadline for partnerships and S companies. With a delay, the new date is September 15, 2023.
How Do I Figure Out How Much Tax I Should Pay?
Check out our page on How to Calculate and Pay Quarterly Expected Taxes if you don’t know how much-expected tax you owe. If your tax situation hasn’t changed much, you might be able to get a good idea of your numbers by looking at your return from the year before. The IRS also has helpful calculation worksheets that can be used to figure out a wide range of tax issues. If you’re not sure how much to pay, it’s better to overpay than underpay, so you don’t have to pay interest and fines for unpaid taxes. If you pay more tax than you need to, you can get a tax return for the difference.
4. Advantages of Getting a Business Tax Extension
Small business owners or self-employed people with SEP IRAs may find that filing a business tax extension is helpful because it gives them more time to put money into their plans. If you don’t know what a SEP-IRA is, it’s a type of IRA made for people who run their own small businesses or work as freelancers. If you figure for yourself and feature this sort of funds, you’ve got till Oct.16 to make any extra payments. Don’t forget to add the money you gave to charity to your federal tax return. Don’t forget that the money you put into your account is for the tax year before this one, not this one.
5. When Should I Ask for an Extension on My Taxes?
Don’t be afraid to file an extension if you need more time to file, whether it’s because you’re still waiting on some tax documents, a family problem came up, or you just put it off too long. The IRS automatically extends without proof. Ask for more time!
6. When Shouldn’t I File an Extension For My Business Tax?
Putting off your taxes doesn’t give you more time to pay your tax. It just gives you more time to file your returns. Instead, people who are having trouble paying their taxes can get help from the IRS. You can set up a payment plan with the IRS so that you can pay your bill in smaller monthly amounts. You may automatically receive six more months to file. These things don’t count:
- You (or your partner) work for the U.S. Armed Forces in a war zone.
- You’re in the military and stationed away.
- You were born in the United States, but you live and work somewhere else.
- You are a U.S citizen who lives in a part of the country where a major nature disaster has happened.
Read More: How to Set Up an IRS Payment Plan Through TaxAct
7. How Do I File a Business Tax Extension?
Form 4868 and Form 7004 are easy to file with TaxAct.
For Form 4868
- Click Filing on the left side of your TaxAct return to make it bigger, then click File Extension.
- Keep talking to make sure you’re getting all the right information.
- On the screen called Filing Extension Step – Extension Options. You can choose to print or e-file your federal extension only. State that you can print additions later on in the interview process.
Read More: Form 4868 help topic if you have any questions or need more information about filling Form 4868 with TaxAct.
For Form 7004
- Go to your TaxAct form (either online or on your computer) and click on the Filing tab.
- Under “Filing,” click “File Extension,” and then keep going as needed for your files.
- The program will keep asking you questions. To help, you get the information you need to ask for an extension.
Read More: To the IRS guidelines for Form 7004 for more information about how to fill out Form 7004.
What Should I Do After Extending My Business Tax?
Don’t put off filing your tax return—you have six more months! While thinking about the previous tax year, finish your tax return as quickly as possible. Make any required payments to a retirement plan for the past year.
Should I Send My Business’s State Tax Report Later?
Some states can ask for more time to file their tax reports by filling out a federal Form 7004 or 4868. Other states have to make a separate request. During the extension interview part of the e-filing process, TaxAct will tell you what your state’s filing standards are.
Conclusion
As we come to the end of this guide on how to file a business tax extension in 2023, we hope you now have a better idea of how this useful tool can help you better manage your tax responsibilities. Remember that getting an extension doesn’t mean you’re putting things off. Instead, it gives you the time you need to make sure everything is correct and gather all the necessary papers.
Get expert tax guidance at Finaccurate and focus on growing your business. Don’t wait; take control of your financial future today!
Frequently Asking Questions
- What is the individual filing deadline for 2023?
Ans: The last date to file your Income tax returns (ITR) for the income earned in FY 2022-23 (AY 2023-24) is 31st July 2023 without any late fee.
- What is the last date for ITR audit?
Ans: When do I have to file my ITR? The last day to file an Income Tax Return (ITR) without paying a late fee for the Financial Year 2022-23 (Assessment Year 2023-24) is July 31, 2023. The last day you can file your federal tax return without having to pay a late fee or extra fee is the IT return due date.
