TurboTax / Tax Calculators & Tips / All Tax Guides / Small Business Taxes / Filing a Business Tax Extension

Filing a Business Tax Extension

Updated for Tax Year 2016


OVERVIEW

 Do you need more time to file your 2016 business tax return? Here's what to do.


If you need more time to complete your 2016 business tax return, you can request an extension of time to file your return. However, even with an extension, you must estimate how much you owe (if you owe) and send in that amount by the due date. Otherwise, the IRS can invalidate your extension.

filing business tax extension

Most business tax returns can be extended by filing Form 7004: Application for Automatic Extension of Time to File by the original due date of the return.

 

Due dates for corporations

If your business is organized as a corporation, the income tax return or extension is due by the 15th day of the 4rd month after the end of your tax year.

For example, if your corporation is a calendar year taxpayer with a December 31 year end, you must file a 2015 tax return or extension request by April 17, 2017.

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, if your partnership is a calendar year taxpayer, with a December 31 year end, you must file a 2016 tax return or extension request by March 15, 2017.

Cautions

The IRS may hit your business with costly penalty and interest charges if you underestimate your taxes, file your return late, or do not furnish certain information by the due date. We assume your business entity is a calendar year taxpayer.

In the event you are a fiscal year taxpayer, please adjust your due dates based on the information provided above. For example, the due date for the tax return of a corporation for the fiscal year ending March 31, 2017 is July 15, 2017.

An exception to this - corporations with a fiscal year from July 1 to June 30, the initial deadline will remain September 15th (15th day of the 3rd month following the end of the fiscal year) and the extention deadline remains February 15 (five months after the first deadline). This exception applies for fiscal years ending through June 30, 2026.  With fiscal years ending June 30, 2027, the filing deadline moves to October 15th (the 15th day of the 4th month following the end of the fiscal year) and the extended deadline moves to March 15th (six months after the first deadline).

S corporations

If your business has always been an S corporation, it is effectively treated as an extension of the shareholders for many tax purposes and will generally not owe any tax itself. However, if your S corporation was once a C corporation, it may owe a corporate-level tax in certain limited situations. An S corporation must provide a Schedule K-1 to all shareholders, detailing their share of the corporation's income and deductions for the tax year.

 

  • In the event your calendar-year S corporation owes taxes for 2016, you'll have to pay interest on the amount you fail to pay by April 17. 2017.
  • If the S corporation does not pay all of the tax by that date, it may owe a penalty of 0.5% of the unpaid tax for each month the tax is not paid, up to a maximum of 25% of the unpaid tax.
  • If you do not file or extend the S corporation's return by April 15 (unless another date due to holidays or weekend), it may owe a penalty of 5% of the unpaid tax for each month the return is late, up to a maximum of 25% of the unpaid tax.
  • If the S corporation fails to file its 2016 return (including a Schedule K-1 to each shareholder) on time, it may also owe an additional penalty of $89 per shareholder per month for each month the return is late, up to a maximum of 12 months.
  • If you think you may need more time to prepare the S corporation's return, you should file for an extension using Form 7004. The due date for your calendar-year 2016 S corporation return will be extended until October 15, 2017.

Partnerships

Like an S corporation, a partnership does not owe itself tax, but is generally treated as an extension of the partners. Partnerships must provide a Schedule K-1 to all partners, detailing their share of the partnership's income and deductions for the year.

  • If you do not file your 2016 partnership return (including a Schedule K-1 for each partner) on time, you may owe a penalty equal to $89 per partner for each month the return is late, up to a maximum of 12 months.
  • The due date for a calendar-year partnership's 2016 return is March 15, 2017. 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, 2017.

Do you need to request a state extension?

State guidelines for filing extensions vary. In many cases, unless you owe state taxes, your federal automatic extension can be used to extend your state return(s) as well. Refer to the tax form instructions or tax help for your state(s) before you request a state extension.

Get every deduction you deserve

TurboTax Deluxe searches more than 350 tax deductions and credits so you get your maximum refund, guaranteed.

For only $54.99$34.99*
Start for Free

Looking for more information?

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.


Security is built into everything we do
Here's how
* Important Offer Details and Disclosures
  • TURBOTAX ONLINE/MOBILE

  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. Free 1040EZ/1040A + Free State offer only available with TurboTax Federal Free Edition; Offer may change or end at any time without notice. Actual prices are determined at the time of print or e-file and are subject to change without notice. Savings and price comparisons based on anticipated price increase expected in March. Special discount offers may not be valid for mobile in-app purchases.
  • QuickBooks Bonus Offer with TurboTax Self-Employed: File your 2016 federal return with TurboTax Self-Employed by 4/18/17 and receive a complimentary subscription to QuickBooks Self-Employed until 4/30/18 at no additional cost. After you file your taxes, you must activate your QuickBooks Self-Employed subscription by 7/15/2017 by logging into QuickBooks Self-Employed via mobile app or at https://selfemployed.intuit.com/login. Once activated, you will have access to QuickBooks Self-Employed until 4/30/2018.
    Offer valid only for new QuickBooks Self-Employed customers.
    • When you use TurboTax Self-Employed to file your 2017 taxes, you will have the option to renew your QuickBooks Self-Employed subscription. If you do not file with TurboTax Self-Employed by 4/30/2018, your QuickBooks Self-Employed subscription will automatically renew on 5/1/2018 for another year at the then-current annual subscription rate. You may cancel your subscription at any time from within the QuickBooks Self-Employed billing section.
  • Pays for itself: In order to pay for the price of TurboTax Self-Employed, you will need at least $600 in deductible business expenses. This calculation is based on the self-employment tax income rate for tax year 2016.
  • Anytime, anywhere: Internet access required; standard message and data rates apply to download and use mobile app.
  • Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary.
  • Pay for TurboTax out of your federal refund: $X.XX Refund Processing Service fee applies to this payment method. Prices are subject to change without notice.
  • TurboTax Expert Help, Tax Advice and SmartLook: Included with Deluxe, Premier and Self-Employed (via phone or SmartLook); not included with Federal Free Edition. Feature availability varies by device. State tax advice is free. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2015 TurboTax products.
  • Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.
  • CompleteCheck: Covered under the TurboTax accurate calculations and maximum refund guarantees.
  • TurboTax Self-Employed Expense Finder: Available only in TurboTax Self-Employed. Not available for people with certain types of expenses and tax situations including paying contractors or employees, home office or vehicle actuals, inventory, self employed health insurance or retirement, asset depreciation, sale of property or vehicles, and farm income. Some financial institutions limit the timeframe for which historical transactions may be imported by ExpenseFinder. ExpenseFinder expected late January (late February for mobile app).
  • TURBOTAX CD/DOWNLOAD SOFTWARE

  • TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal e-file of up to 5 federal tax returns. Additional fees apply for e-filing state returns. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase expected in March. Prices subject to change without notice.
  • Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary.
  • Pay for TurboTax out of your federal refund: $X.XX Refund Processing Service fee applies to this payment method. Prices are subject to change without notice. This benefit is available with TurboTax Federal products except TurboTax Business.
  • About our TurboTax Product Experts: Customer service and product support vary by time of year.
  • About our credentialed tax experts: Live tax advice via phone is included with Premier and Home & Business; fees apply for Basic and Deluxe customers. State tax advice is free. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice. Not available for TurboTax Business customers.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2015 TurboTax products.
  • Data Import: Imports financial data from participating companies. Quicken and QuickBooks import not available with TurboTax installed on a Mac. Imports from Quicken (2015 and higher) and QuickBooks Desktop (2011 and higher); both Windows only. Quicken import not available for TurboTax Business. Quicken products provided by Quicken Inc., Quicken import subject to change.