Filing For Business Tax Extension

Sometimes, especially when you are not well prepared in advance, things may become just out of your control and you may not be able to file your taxes in time. In such cases, you can avoid penalty charges and late fees by filing for business tax extension. You can write a letter to the IRS, requesting them to allow you more time to file your business tax returns. Following is a brief step-by-step guide on to how to do this.

Understand Your Situation

You must have a clear and honest idea about the kind of situation you are in. It means you must be able to evaluate everything thoroughly in order to find out how much additional time you need for tax filing. Sometimes, things may just sound to be very complicated, but if you do a thorough review, you may find that you do not actually need to file an extension. For example, you may just work a little late at night for a couple of days and manage to be in time. If that is possible, there is no need to waste time by filing for business tax extension. However, if you are in a kind of situation, where things are really very complicated and you are also missing a lot of documents and forms, you definitely need an extension.

Obtain The Correct Forms

In order to file for an extension, you will need to fill a specific form and submit the same to the IRS. Here, it is very important for you to keep in mind that the Internal Revenue System offers different types of forms depending upon why you need an extension and whether you are an individual, a partnership firm, or a company. For example, if you want extension to file ‘certain business income tax documents’, you will have to fill out the Form 7004. Likewise, if it is a partnership firm, you may have to file the Form 8736. You can contact the IRS office to find out which forms you have to submit in your specific situation. You can then download that form from the official website of the Internal Revenue System. Alternatively, your accountant or tax lawyer can also help you choose the right form and assist you with the process.

Follow The Instructions Thoroughly

When it comes to filing for business tax extension, you must be very careful while filling out the forms, as even a minor mistake can make things complicated and invite hassles. Double check everything before you submit the same.

Submit The Form Before The Deadline Passes

Last, but not the least, it is very important for you to keep in mind that the forms must be submitted before the tax deadline date. If you are submitting the form after the deadline for filing tax returns has already passed, there will just be no way to avoid the late fees and other penalty charges.

Overall, if you follow the above steps thoroughly, you should not have much difficulty in filing for business tax extension and getting approved for the same.