The IRS recommends that taxpayers refer to their previous tax returns as long as the annual profits match the year for which you file an S-Corp extension. You can use your previous year`s income, deductions and credits as a starting point for calculating your estimated taxes. If for some reason you are unable to use your previous year`s federal tax return as a guide, use the IRS spreadsheet to calculate your estimated S-Corp tax. If your company has always been an S company, it is effectively treated as an extension of shareholders for many tax purposes and generally does not owe taxes per se. However, if your S company was once a C company, it may be liable for corporate income tax in certain limited situations. An S corporation must provide all shareholders with a Schedule K-1 that lists their share of the corporation`s income and the deductions for the taxation year. An exception to this rule – companies whose fiscal year runs from July 1 to June 30 remains the original deadline of September 15 (15th day of the 3rd month after the end of the fiscal year) and the extension period remains February 15 (five months after the first period). This exemption applies to fiscal years ending June 30, 2026. As fiscal years end on June 30, 2027, the submission deadline is extended to October 15 (the 15th day of the 4th month following the end of the fiscal year) and the deadline extended to March 15 (six months after the first period).
Whatever the reason, the IRS understands the reality that time is running out and makes it easier to report a corporate tax extension. Check the table below if you`re not sure when corporate tax returns for your business structure are due. And the deadline to file a corporate tax extension is the same as the corporate tax return due date, so keep in mind! Although you do not need to sign or date Form 7004 for the automatic extension, it is important to read the instructions before you start entering information to ensure the accuracy of your file extension for an S-Corp. Fortunately, extensions are usually easy to prepare and archive. However, the IRS instructions require that Form 7004 be filed no later than the due date of the applicable tax return. The return due dates can be found in the instructions for the respective return. This avoids the double taxation of the S-Corporation on its corporate tax. They are also responsible for taxing certain integrated profits and passive income at company level. Calculating the estimated amount owed can be difficult if you`re not ready to file your tax return, but your tax advisor or software can help.
Simply provide as much information as you have, and then use estimated amounts for the rest. If your tax situation hasn`t changed significantly since you filed last year, that`s a great place to start. Any business can voluntarily use TVET to make federal tax filings, but businesses are required to use TVET to make all federal filings, including labor taxes, excise taxes, and corporate taxes. You can register online and then pay online or by phone. For more information about TVET, see IRS Publication 4990, the TVET payment order for businesses and individual taxpayers. Once you`ve determined what taxes your S Corp must pay, head over to the IRS website to complete Form 7004. Although the form itself is only one page long, it would be wise to read the IRS instructions for Form 7004 before filling out the form. This way, you can make sure that you fill out the form correctly. Whether you`ve been filing an S Corp tax return for years or you`re still in the process of starting your business, filing an S Corp tax return can be intimidating, especially if you know you haven`t finished on time.
For this reason, it is important for you to know that you still have the option to apply for an extension of S Corp`s tax return from the IRS. Because these entities are not taxed on their income at the entity level, you do not need to file an estimated tax payment using your Extension Form 7004. Instead, you will also need to file an extension of your personal tax return form 1040. With this extension, you should determine the income that goes on your personal income tax return and pay the estimated tax with your individual extension. After calculating the taxes your S-Corp must pay, visit the IRS website to complete Form 7004. You can print a copy of this form to fill it out and send it to the address indicated in the form or enter the information online to submit it via an electronic file. The use of the IRS Electronic File Corporate Tax Extension is faster and more efficient. However, if you prefer to print the form, send it to the address indicated on the form. If you are using TurboTax Enterprise software, choose EasyExtension, a TurboTax tool that allows you to file a tax extension in minutes, or you can print and email Form 7004 through the program. But asking for an extension won`t help if you can`t make your business tax payment on time. The extension is just a deadline to file your tax returns, not to pay them. You must pay all taxes due before the original deadline, otherwise you will be charged interest and fees.
All of this will affect your tax refund. If you need more time to complete your 2021 business income tax return, you can request an extension of your tax filing deadline. But even with an extension, you need to estimate the amount you owe (if you do) and send that amount before the due date. Otherwise, the IRS may invalidate your extension. When sending your renewal and payment, be sure to send it by registered mail so you can prove that your tax extension was submitted on time. The IRS processes a huge amount of mail every day, and things get lost. If the IRS claims it didn`t receive your payment or renewal by the due date, you could face penalties. If you can prove that the cheque or extension was sent on the due date, it will be deemed to have been received on the day you sent it, even if it was actually received a few days later. If you need to apply for an extension for your small business, the IRS makes it easy to do. There are many reasons why small business owners need more time to submit.
Keep in mind that this is an extension to declare corporate tax, not to pay them. As always, if filing taxes isn`t your forte, get tax help and advice from a certified tax professional. But if you need a little help, there are some great resources to help you connect with the right professionals. If you need help organizing your books before you`re ready to file your tax return, our partners at Bench offer online accounting services. And if you`re looking for a Chartered Accountant (CPA) to help you file your return, our partners at Taxfyle will put you in touch with a certified CPA. .