Top 10 Questions About Business Tax Extensions
I love a classic Top Ten Questions Blog; especially if it’s about tax extensions. The Business Tax Extension deadline is Monday, March 16th. If you’re still on the fence about whether or not you should file a tax extension, maybe answering these questions will be your final deciding factor.
1. Do I need to file a tax return if my corporation is inactive?
The simple answer is – yes. Unless you are exempt under section 501, you must file an income tax return whether you have taxable income or not. This includes corporations in bankruptcy.
2. What information do I need to file a tax extension?
You will need your EIN/Federal ID number, your business information, your contact information, and the estimated tax amount due.
3. Do I have to provide a reason for requesting an extension of time to file my business taxes?
You do not have to provide a reason for why you are requesting an extension.
4. Which form do I use to file a tax extension?
The form you file will depend on the type of extension you need. ExpressExtension provides three different types of extension forms: Form 7004 Business Tax Extension, Form 4868 Personal Tax Extension, and Form 8868 Exempt Organization Extension Form.
5. Does the federal extension application count for my state as well?
State extensions vary by state. Some are included automatically, some aren’t needed, and others must be filed with the state specifically.
6. How do I file an extension for my state return?
ExpressExtension currently provides extensions for 5 states: Florida, North Carolina, Illinois, Michigan, and South Carolina. You can find filing information for each state on our State Tax Extension page.
7. If I file an extension for my business tax return, must I also extend my personal return?
No, you don’t have to, but if you know you will need more time to file your business tax return, you might need more time to file your personal return too.
8. My tax extension application was rejected! What do I do?
If you e-filed your extension with ExpressExtension, you can easily make any needed corrections and re-transmit your return to the IRS.
9. How long will my deadline be extended if I e-file a business tax extension?
Once your Form 7004 is accepted by the IRS, your deadline will be automatically extended 5 to 6 months depending on your business type.
10. When will I know if the IRS accepts my tax extension?
Once you have e-filed your return through ExpressExtension and it has been transmitted to the IRS, you will receive an email notification as soon as it is accepted. It doesn’t take long at all if filed during the business week.
If you have questions about tax extensions, don’t hesitate to give the ExpressExtension Support to a call at 803-514-5155 or send them an email at [email protected]