How Can You File For A Tax Extension?

You need to file taxes for all your businesses. If you don’t have the required documents for the same and you need.

What is a business tax extension?

All your businesses would undergo profits, losses and revenue. You need to declare all your cash flows with the government. This is called as tax returns. But while filing for your tax returns, if you realize that you need more time to get all your documents in place, and then you can file for an extension of time. This is called as a business tax extension.

Filing for a business tax extension allows you to get an additional five or six months’ time to file your taxes.

When should you avail a business tax extension?

You can avail for a tax extension in any of the following scenarios:

• If you are running a business and you need more time to get all your documents in place.

• If you are a small company and do not have the resources to take care of your incomes and revenues; and you need more time for this.

• If you are away during the tax season.

• If you are facing any family emergencies or natural disasters at the time of filing your returns.

However, you need to remember that you do not have to provide any reason at the time of filing for your tax extension. You can just file for your business tax extension using form 7004.

Also, remember that applying for a tax extension should be done before the Tax day; which is the 15th of April every year.

Details of form 7004

This is an automatic business tax extension form. Meaning; once you fill in the details and submit this with the IRS, you will be granted an additional time to file your taxes. You need to provide the following details while filling the form.

o Name

o Employment details

o SSN (Social Security Number)

o Address

o Type of business and partners details

o Business location: Remember that if your business does not have any office or is located outside of the United States, you can mention the same in the form. You can still avail the tax extension benefit for your business.

Depending on the type of business and the partners involved you would be entitled to a five or six month extension of tax filing deadline.

You can apply for a business tax extension in two ways. You can manually fill or submit this form with the IRS. The other option is to fill the same online, using the Electronic Federal Tax payment system (EETTPS). The advantage of filing your tax extension online is it allows you to pay your taxes online too. You can then pay your taxes online.

Cases of rejection

The IRS holds all right to reject your business tax extension plea. The IRS can reject your form if:

o There is a mismatch in the details that you have provided in the Form 7004.

o You have a huge amount of money that you owe to the IRS from your previous tax returns.

o You are a habitual defaulter in paying your previous taxes.

FileLater is an IRS authorized e-file provider that has a team of tax professionals helping individuals and businesses understand how to file a tax extension electronically, to extend their income tax filing deadlines, through an easy to use online application. Get to know more information on extend deadline for taxes, you may visit WikiHow.com.

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