Filing a Business Tax Extension
Do you need more time to file your 2024 business tax return? Here's how to file for a business tax extension.
When a significant natural disaster hits – such as a hurricane, earthquake, tornado, flood, wildfire, blizzard, or the like – the IRS will extend upcoming federal tax deadlines for affected taxpayers if a federal disaster is declared. The extended due dates apply to most federal tax returns and payments, including those for income taxes (including estimated tax payments), payroll taxes, and excise taxes. If you’re impacted by a natural disaster, check our IRS Disaster Relief page to see if you qualify for an automatic tax filing or payment extension.
Key Takeaways
- Most business tax returns can be extended by filing Form 7004. You must file it by the original due date of the return.
- If you need an extension, check with your state taxing authority to see if you need to file one with them as well.
- If your business is organized as an S corporation or partnership and is a calendar-year taxpayer, your income tax return or extension is due by the 15th day of the 3rd month after the end of your tax year, usually March 15th.
- If your business is a C corporation and is a calendar-year taxpayer, your income tax return or extension is due by the 15th day of the 4th month after the end of your tax year, usually April 15.
Business tax extensions
If you need extra time to complete your 2024 business tax return, you can request a filing extension. However, even with an extension,you need to estimate how much you owe (if you owe) and send in that amount by the original due date of the return.
You can extend most business tax returns by filing Form 7004. You must file it by the original due date of the return.
Due dates for corporations
If your business is an S corporation, you must file the tax return or extension by the 15th day of the 3rd month after your tax year ends. For example, if your S corporation is a calendar-year taxpayer with a December 31 year end, you need to file a 2024 tax return or extension by March 15, 2025.
If the business is a C corporation then the extension is due by the 15th day of the 4th month after the end of your tax year. For example, let's say if your C corporation is a calendar-year taxpayer with a December 31 year end. In that case, you need to file a 2024 tax return or extension request by April 15, 2025.
Due dates for partnerships
If your business is organized as a partnership, your income tax return or extension is due by the 15th day of the 3rd month after the end of your tax year. For example, suppose your partnership is a calendar-year taxpayer, with a December 31 year end. In that case, you must file a 2024 tax return or extension request by March 15, 2025.
Cautions
It is important to meet the IRS deadlines. If you underestimate your taxes, file your return late, or do not furnish certain information by the due date, you may face penalties and interest.
The dates above assume your business entity is a calendar-year taxpayer. If you are a fiscal year taxpayer, adjust your due dates using the information above. For example, the due date for the tax return of a C corporation for the fiscal year ending March 31, 2024, is July 15, 2024.
An exception to this rule is corporations with a fiscal year from July 1 to June 30. For these corporations, the initial deadline will remain September 15th. The extension deadline remains February 15th. This exception applies for fiscal years ending through June 30, 2026. For fiscal years that end on June 30, 2027, the filing deadline moves to October 15th (the 15th day of the 4th month after the year ends). The extended deadline moves to March 15th (6 months after the first deadline).
TurboTax Tip:
Even if you file an extension, you need to estimate how much you owe (if you owe). Then, you need to send in that amount by the original due date.
S corporations
If your business has always been an S corporation, it is treated as an extension of the shareholders for many tax purposes. It will generally not owe any tax. However, if your S corporation was once a C corporation, it may owe a corporate-level tax. This only happens in certain limited situations. An S corporation must give a Schedule K-1 to all shareholders. It shows their share of the corporation's income and deductions for the tax year.
- If your calendar-year S corporation owes taxes for the year, you'll have to pay interest on the amount you fail to pay by the original due date, typically March 15, 2024.
- The S corporation is required to pay all of the tax by that date. If it does not, it may owe a penalty of 0.5% of the unpaid tax for each month the tax is not paid. The penalty can reach up to 25% of the unpaid tax.
- If you do not file or extend the S corporation's return by the original due date, typically March 15 (unless another date due to holidays or weekend), it may owe a penalty. The penalty is 5% of the unpaid tax for each month the return is late, up to a maximum of 25% of the unpaid tax.
- The S corporation needs to file its return on time. The return includes a Schedule K-1 for each shareholder. If it is late, it may owe a $220 penalty per shareholder per month. This is for up to 12 months.
- If you think you may need more time to prepare the S corporation's return, file for an extension with Form 7004. The due date for your calendar-year S corporation return will typically be extended until September 15.
Partnerships
Like most S corporations, a partnership does not owe income tax. It is treated as an extension of the partners. Partnerships are required to provide a Schedule K-1 to all partners. It shows their share of the partnership's income and deductions for the year.
- If you don't file your partnership return on time, you may owe a late filing penalty. It's $220 per partner for each month the return is late, up to 12 months.
- The due date for a calendar-year partnership's return is typically March 15. If you think you may need more time to prepare your return, you should file for an extension using Form 7004. The due date for your partnership return will be extended until September 15.
Do you need to request a state business tax extension?
State guidelines for filing extensions vary. In many cases, if you don't owe state taxes, your federal extension can also extend your state return(s). Refer to the tax form instructions or tax help for your state(s) before you request a state extension.
With TurboTax Live Business, get unlimited expert help while you do your taxes, or let a tax expert file completely for you, start to finish. Our small business tax experts are always up to date with the latest tax laws and will ensure you get every credit and deduction possible, so you can put more money back into your business. Small business owners get access to unlimited, year-round advice and answers at no extra cost and a 100% Accurate, Expert Approved guarantee.
