Tips For E-Filing IRS Tax Extensions

When filing a Tax Extension for your personal, business, or nonprofit return, the simplest way to file this with the IRS is to E-File the appropriate form.  The IRS has authorized as an official E-File Provider for Personal Tax Extensions with IRS Form 4868, Business Tax Extensions with IRS Form 7004, and Nonprofit Tax Extensions with IRS Form 8868.

A Business Tax Extension must be filed by March 15, 2013, and once they are processed by the IRS, you will be granted an automatic 5 or 6 month tax extension. The exact length of time that your tax deadline is extended depends on your business type.  The Form 7004, otherwise known as a Business Tax Extension can be used by Multi-Member LLCs, C-Corporations, S-Corporations, Partnerships, Trusts and Estates. Certain Partnerships, Trusts, and Estates are only able to apply for a tax extension of 5 months instead of the 6 month extension; this is determined by which tax form they would be filing for their return.

A common question that businesses may have is in regard to different types of LLCs.  When filing a business Tax Extension, it is necessary to know what type of LLC the business is. There are 3 primary types: Single Member LLC, Multi Member LLC, and Multi Member LLC (setup as a corporation).  A Single Member LLC would not need to file a Business Tax Extension, because its information would be included in its personal tax return. The two types of Multi Member LLCs are different in that one is incorporated, while the other is not. A standard LLC is not incorporated unless it has gone through the additional requirements and processes to become a corporation.

There are also small differences between different Corporation Types.  C Corporations and S Corporations have some similarities and differences, but it is important to know the differences and your specific type when filing a tax return.  The primary difference between C Corporations and S Corporations is that C Corps, which are standard corporations, are separately taxable entities. S Corporations are considered to be pass-through entities in which the profits and losses are passed through to the owners’ tax returns.

A Personal Tax Extension must be filed by April 15, 2013 for an automatic 6 month tax extension.  IRS Form 4868 can be used by Individuals, Contractors, Single Member LLCs, and Sole Proprietors to file their tax extension.

Non Profit Organizations must be filed by May 15, 2013 for a 3 Month Tax Extension.  IRS Form 8868 can be used by Non-Profit and Exempt Organizations and it is possible to E-File for an additional 3 months through ExpressExtension after the first extension has expired.  

Although filing a Tax Extension with is typically a very quick process, one must be familiar with all the general information about their business in order to file any type of tax extension.

An IRS tax extension is meant to extend the amount of time that a person has to file a return.  It does not extend the amount of time to pay the taxes due. The IRS will still expect to receive the estimated tax amount upon the deadline.  Businesses are required to pay the full tax amount at the due date.  Individuals, however, are allowed to pay less than the total amount due. An installment plan can be setup with the IRS, and/ or penalties and interest depending on the exact situation.  Please consult with the IRS directly in this type of situation.

If you have any questions about filing Tax Extensions, you can contact the Express Tax Support Center in Rock Hill, SC at 803-514-5155 between the hours of 8am – 6pm EST, Monday through Friday or email [email protected].

Add a Comment

Your email address will not be published. Required fields are marked *