Extension for Filing Tax Returns

It is a simple and acceptable practice to file an extension and delay the filing deadline for your income tax return. The IRS will issue an automatic 6 month extension to anyone who asks by filing a form with the IRS by the tax return due date.

However, this does not extend the time for paying your taxes. The income taxes should be paid by the due date or you will face penalties. If you do not know how much the taxes will be then you need to estimate what should be paid for 2016 and pay that amount. If you have paid all your income taxes for 2016, the IRS is happy and will not expect you to file your return until the extended due date. However, if you don’t pay all your taxes you will have penalties and interest to pay in addition to your taxes. My recommendation is to pay at least the required amount or more so that there are no problems later.

There are special penalties for late filing and late payment so please file the Form 4868 or Form 7004 and pay your taxes before the due date.

The IRS changed a few tax deadlines for 2017. The main purpose was to require Partnerships and S Corporations to issue K-1’s before C Corporations and Individuals filed their respective returns. See the details below.

Part 1 Individual Income Tax Return Form 1040

Do you have to file your personal income tax return by April 15? Actually it is April 18 in 2017.

NO you do not have to file your Individual income tax return by April 18, 2017

BUT you should pay all your 2016 taxes by April 18, 2017.

USE Form 4868 “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return”

It is very easy to extend the filing due date for your Individual income tax return for six (6) months from April 18 until October 16. All you need to do is file Form 4868 before April 18. It is an automatic extension of time to file so there is no approval needed.

Part 2 C Corporation Income Tax Return Form 1120

Do you have to file your C Corporation income tax return by March15? Actually this has changed for the tax year 2016. The deadline is now April 15 for Form 1120 which means April 18 in 2017.

NO you do not have to file your C Corporation tax return by April 18, 2017

BUT you should pay all your 2016 taxes by April 18, 2017.

USE Form 7004 “Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns”

It is very easy to extend the filing due date for your C Corporation income tax return for six (6) months from April 18 until October 16. All you need to do is file Form 7004 before April 18. It is an automatic extension of time to file so there is no approval needed.

 

Part 3 S Corporation Income Tax Return Form 1120S

Do you have to file your S Corporation income tax return by March 15?

NO you do not have to file your S Corporation income tax return by March 15, 2017

BUT you should pay all your 2016 taxes by March 15, 2017.

USE Form 7004 “Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns”

It is very easy to extend the filing due date for your S Corporation income tax return for six (6) months from March 15 until September 15. All you need to do is file Form 7004 before March 15. It is an automatic extension of time to file so there is no approval needed.

Part 4 Partnership Income Tax Return Form 1065

Do you have to file your Partnership income tax return by April15? Actually this has changed for the tax year 2016. The deadline is now March 15 for Form 1065.

NO you do not have to file your Partnership income tax return by March 15, 2017

USE Form 7004 “Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns”

It is very easy to extend the filing due date for your Partnership income tax return for six (6) months from March 15 until September 15. All you need to do is file Form 7004 before March 15. It is an automatic extension of time to file so there is no approval needed.

Tax Planning Strategy: If you have a refund due then file your tax return as soon as possible. However, if you owe taxes or simply need more time to file, file an extension to your tax return and prepare your return, or have your tax professional prepare your return, in the summer months when workloads are lighter. This is especially applicable to investors who waiting for brokerage statements or K-1’s which may be delayed until after your tax return due date.

 

 

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