Welcome to www.OnlineOrganizing.com -- A World Of Organizing Solutions Your Order Your Shopping Cart About Us Contact Us Site Map
Do You Need Help Getting Organized?Shop For Organizing And Business Development ProductsProfessional Organizing ServicesFind A Seminar, Workshop, Or Keynote SpeakerRead Our Two Free Monthly NewslettersFree Organizing Tips And AdviceResources For Professional OrganizersLearn How To Become A Professional OrganizerUseful Organizing Website LinksUseful Organizing Website Links


Search for:

Category:


Here are some random keywords you might like to explore:

You Are Here: Home - Newsletters - "Organized For A Living" - Article

     How To Get An Extension To File Your Business Tax Returns


If you can’t imagine getting your tax returns together by the appropriate filing DEADLINE, you need not worry. The Internal Revenue Service automatically gives you an EXTENSION if you file the appropriate form. As you might expect, there are different forms for different businesses.
AN IMPORTANT NOTE

It is vitally important that you understand that an extension to file taxes is not an extension to PAY taxes. The Internal Revenue Service will give you a break on the filing date, but it wants the money now! If you anticipate that you will owe taxes, you need to send in the appropriate payment. Failure to do so could result in INTEREST charges when you eventually get around to filing your returns.
CORPORATIONS

If you conduct business as a CORPORATION with a fiscal year-end of December 31st, you are required to file your tax returns on or before March 15. You can get an automatic extension, however, by filing form 7004 before the March 15 deadline. Form 7004 applies both to “C” and “S” corporations and grants you an automatic 6-MONTH extension to September 15.
ONE SMALL GLITCH

While this automatic extension applies to “S” corporations, you should be aware of a QUIRK in the tax code. Since “S” corporations “pass through” taxes to your personal returns, the six-month extension is really only a five-month extension. To file your personal tax returns, you must report information from the K-1 issued from the “S” corporation. Unfortunately, the Internal Revenue Service only grants automatic extensions for filing PERSONAL tax returns to August 15.
LIMITED LIABILITY COMPANY

The Internal Revenue Service has never really figured out to how to handle limited liability companies. It has settled on a policy of AVOIDING the issue and simply treating the entity as a corporation or partnership.
WHICH ARE YOU?

Limited liability companies with more than one owner typically elect to be treated as PARTNERSHIPS for tax purposes. If this describes your situation, the company is required to file tax returns by April 15. You can obtain a 3-MONTH extension by filing form 8736. Although form 8736 contains language regarding partnerships, you will still use this form since the Internal Revenue Service classifies you as a partnership for tax purposes. If you are the sole owner of a limited liability company, you may be in for a surprise. The Internal Revenue Service doesn’t recognize limited liability companies owned by one person. Instead, it simply considers you a SOLE proprietor and the rules for sole proprietorships apply. These are discussed below.
PARTNERSHIP

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.
SELF-EMPLOYED / SOLE-PROPRIETOR

If you are not using a business entity, your business tax information should be reported on your PERSONAL tax return. The due date for filing your personal tax returns is April 15. You can obtain a 4-MONTH extension by filing form 4868.
SUMMARY

Regardless of how your business is organized, the Internal Revenue Service will AUTOMATICALLY grant you an extension to file your tax returns. By sending in the appropriate form, you can avoid a mad RUSH that will inevitably result in missing deductions and overpaying your taxes. Just make sure you pay any taxes you anticipate owing by the appropriate date.

 

Richard Chapo is with BusinessTaxRecovery.com -- providing information on taxes.


Would you like to reprint this article in your publication -- or distribute it to a wider audience? Click here for reprinting instructions.

Want to receive these kind of articles via e-mail each month? Sign up for a free newsletter subscription.

Click here to return to "Organized For A Living" -- July 2007...

Add this page to your Bookmarks!

E-mail this page to a friend!







www.OnlineOrganizing.com is a service mark of Bradford, LLC.
Content on this site is © Bradford, LLC, All rights reserved.

If you notice any problems with this site, please contact our webmaster.
And if you don't see what you need you are welcome to "ask the organizer" any question!

To see what people are saying about www.OnlineOrganizing.com, check out our visitor comments.

Click here to view our privacy policy.

Calendar Of Organizing Holidays And Events Blog Central Sign Up For Our Free Online Newsletters Join The Conversation At Our Organizing Discussion Board Advertise Your Company On Our Website Be An Affiliate Of www.OnlineOrganizing.com
Check Us Out On FaceBook