Small Business Owners: What to Know about Filing for a Tax Extension

As a point of last resort, businesses can file for a tax extension if they are unable to file taxes by the standard deadline.

However, it is critical to know, even if you plan on filing for an extension, you must estimate how much taxes your business will owe for the year and send in that amount by the due date listed below. If you are over or under on your estimation, you will make up the difference or be repaid when you actually file.

The following dates correspond to the 2018 standard due dates and extension deadlines for 2017 business tax filings:

Federal Business Tax Deadlines

• Original deadline for partnerships (Form 1065) and S Corporations (Form 1120S) - March 15, 2018

• Original deadline for C Corporations (Form 1120) and individuals (Form 1040) - April 17, 2018

• Original deadline for exempt organizations (Form 990) - May 15, 2018

• Final deadline for partnerships and S Corporations (with extension) - September 17, 2018

• Final deadline for C Corporations and individuals (with extension) - October 15, 2018

• Final deadline for exempt organizations (with extension) - August 15, 2018

If you’re considering filing for a corporate tax extension, IRS Form 7004 can be used to extend the filing deadline for the following business returns:

Form 706-GS(D), Form 706-GS(T), Form 1041, Form 1041-N, Form 1041-QFT, Form 1042, Form 1065, Form 1065-B, Form 1066, Form 1120, Form 1120-C, Form 1120-F, Form 1120-FSC, Form 1120-H, Form 1120-L, Form 1120-ND, Form 1120-ND (section 4951 taxes), Form 1120-PC, Form 1120-POL, Form 1120-REIT, Form 1120-RIC, Form 1120S, Form 1120-SF, Form 3520-A, Form 8612, Form 8613, Form 8725, Form 8804, Form 8831, Form 8876, Form 8924, and Form 8928

 Colorado Business Tax Extensions

In Colorado, businesses can get a 6 month business extension if you are unable to file by the traditional deadline. However, as with the federal government, a Colorado tax business tax extension does not delay the payment. You must pay at least 90% of your tax bill by the original deadline to avoid a penalty.

Failure to pay your business’s tax liability by the deadline, regardless of your extension, can trigger penalties and interest charged on the amount of owed taxes failed to pay on time. Furthermore, if you do estimate your taxes and pay the estimation on time, you may also be hit with interest and penalties if the estimation is wrong.

Corporate tax preparation can be very stressful and taxing, pun intended. If your business could use help navigating corporate tax preparation, Tally Services is here to help. We partner with businesses big and small to help make tax preparation go as smoothly as possible and reduce the headache taxes can cause. Contact us today to learn more about how we can help your business with tax season.