4868  Tax Extenstion

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Business Tax Extension

The tax season is upon with the first filing date forsome businesses being March 15, 2005. If you can’t imaginegetting your tax returns together by that date, you need not worry. The IRS automatically gives you an extension if your file the appropriate form. As you might expect, there are different forms for different businesses.
Income tax extensions are just for irresponsible taxpayers, right? Wrong. It is incredibly easy to qualify for a personal or business tax extension more and more taxpayers are routinely filing for them every year. Make sure your return is accurate if you want to file tax extension. Maybe you had changes in your life that require some extra paperwork.
In many cases the IRS allows you to file a no-questions-asked tax extension form. Which particular form you file depends on what type of entity your business happens to be.

• Sole Proprietorship:

You need to file Form 4868 to get an automatic 6-month extension to file your personal income tax return.

• Corporations:

Whether you are a "C" Corporation or an "S" Corporation, you must file Form 7004 by March 15. Doing so grants you an automatic 6-month extension for filing Form 1120 ("C" Corp) or Form 1120S ("S" Corp). Form 7004 applies both to “C” and “S” corporations and grants you an automatic 6-month extension to September 15, 2005.

• Partnerships:

If your business is a partnership, you are required to file tax returns by April 15, 2005. You can use form 8736 to obtain a 3-month extension.

Limited liability companies with more than one owner typically elect to be treated as partnerships for tax purposes. If this describes your situation, the LLC is required to file tax returns by April 15, 2005. You can obtain a 3-month extension by filing form 8736. Although form 8736 contains language regarding partnerships, you will still use this form since the IRS classifies you as a partnership for tax purposes.
personal tax extenstion
Summary:

Regardless of how your business is organized, the IRS will automatically grant you an extension to file your tax returns. By sending in the appropriate form, you can avoid a mad rush that will inevitably result in missing deductions and overpaying your taxes. Just make sure you pay any taxes you anticipate owing by the appropriate date.

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