Decoding Business Tax Extensions: How S-Corporations Can Extend Their 1120-S Deadline

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Tax deadlines can often feel overwhelming, especially when multiple filings are looming on the horizon. However, extensions can offer some much-needed breathing room. It’s important to note that extension forms and requirements vary depending on the business structure. As we begin this new blog series, we’ll be diving into the specifics of tax extensions for different business types, starting with S-corporations. In this article, we’ll break down what S-corporations need to know about the Form 1120-S filing process and how to easily request an extension by filing Form 7004. We’ll also introduce how ExpressExtension simplifies this process, making it faster and more efficient.

S-Corporations and Their Tax Filing Requirements

An S Corporation (S-Corp) is a business structure that allows a corporation to pass its income, losses, deductions, and credits directly to its shareholders, avoiding double taxation. This means the business does not pay taxes at the corporate level; Instead, the profits and losses are reported on the individual tax returns of the shareholders. Each shareholder receives a Schedule K-1 that details their share of the S-corp’s income, deductions, and credits, which they must report on their personal tax returns.

In order to maintain their S-corp status, businesses must meet certain eligibility requirements, such as having only one class of stock and a limited number of shareholders (usually no more than 100). Additionally, S-corporations are required to file Form 1120-S annually with the IRS. This form reports the financial activities of the business, including income, expenses, and profits, as well as other details such as distributions to shareholders.

When is the Deadline For S Corporation to File Form 1120-S?

The S-Corporations must complete and file Form 1120-S with the IRS no later than the 15th day of the third month after the end of the tax year. If your corporation operates on a calendar year, the deadline to file Form 1120-S for the 2024 tax year is March 17, 2025 (since March 15 falls on a weekend), approaching quickly

How S-Corporations Apply for an Extension?

As mentioned above, meeting filing deadlines can be overwhelming at times. This is when an extension comes into play! S-Corporations do have the option to apply for an extension to file Form 1120-S. If you need more time to file Form 1120-S for your S-Corp business, you can use Form 7004 to request an automatic extension.

By filing Form 7004 with the IRS, your S-corp can receive an automatic 6-month extension, pushing the filing deadline from March 15 to September 15 (for calendar-year filers). This extension provides you with extra time to gather the necessary documents and ensure your tax return is accurate. However, it’s important to note that while Form 7004 extends your filing deadline, it does not extend your payment deadline. Any estimated taxes owed must still be paid by the original due date to avoid interest and penalties.

Since this extension is automatic, you do not need to provide an explanation to the IRS for filing Form 7004 extension.

What Information is Required to File Form 7004?

When you file 1120-s extension Form 7004 with the IRS, you must have the following information to make the filing process smooth and easier.

• The basic business information includes name, address, and identifying number (EIN or SSN)
• The appropriate code for the tax form that you’re requesting for an extended deadline
• The beginning and ending dates of the tax year
• The tentative total tax liability for the year
• The total payments and credits made throughout the year
• The balance dues for the tax year

To learn more about the 7004 instructions, click here.

How to File Form 7004?

IRS Form 7004 can be filed either on paper or electronically with the IRS as long as it is submitted before the Form 1120-S deadline. When you e-file business tax extension Form 7004, you will receive status notifications from the IRS, whereas paper filers will not. Therefore, the IRS recommends filing Form 7004 online for faster processing.

E-file Form 7004 in Minutes with ExpressExtension

File your Form 7004 quickly and easily with ExpressExtension! We offer a fast and straightforward filing process and instant updates on your extension status with the IRS.

We also provide an additional level of confidence with our Express Guarantee! Under this guarantee, we assure you of IRS approval and will refund the filing fee if forms are rejected due to duplicate filing. If your extension form is rejected for any reason, you can fix the errors and retransmit the extension form to the IRS at no additional cost.

Additionally, we offer a copy return feature in which you can copy the data from a previously accepted return to speed up the extension filing process.

For a stress-free filing experience and to avoid IRS penalties, e-file Form 7004 with ExpressExtension today!