Today is the Extension Deadline for Business Income Tax Forms 1120-S and 1065
Spring is a busy time of year for businesses, the season is changing, the first quarter is coming to a close, and…business income taxes are due.
There are several business income taxes that are due on March 15, 2022. Some of the most common include Forms 1120-S and 1065.
Is your business required to file either of these forms? If so, you may need some additional time to gather the information needed to complete them. By filing an extension, you can extend your deadline up to 6 months.
Here’s what you need to know about filing your Form 7004 extension this year.
What is Form 1120-S?
This business income tax return must be filed by S-Corporations. An S-corporation is a business that passes its gains, losses, and income through to its shareholders.
This form is designed to provide the IRS with information about the income, gains, losses, and deductions of corporations and a variety of other financial activities that have taken place during the tax year.
The IRS determines that this form must be filed by the 15th day of the third month after the close of the corporation’s tax year. For corporations operating on a calendar year, this deadline falls on March 15, 2022.
What is Form 1065?
Form 1065 is required to be filed by businesses that are partnerships. These businesses are not owned by a single individual, but a group of individuals, partners.
This form captures information about the income, gains, losses, and deductions of the partnership during the tax year.
The IRS determines the deadline for filing this form the same way as it does for the Form 1120-S. The deadline for filing is fifteen days and three months after the close of the tax year for the organization. For partnerships operating on a calendar year, this will again be March 15, 2022.
Filing a Form 7004
There are many misconceptions about tax extensions that just aren’t true, for example that they are difficult and the IRS frowns upon them. This is totally untrue! The IRS has no problem with you filing an extension for your business income tax return, as long as you follow the proper procedures for filing.
The IRS doesn’t even require a reason or explanation for your extension, it is automatically granted as long as your information is accurate and matches what is on file with the IRS.
If you choose to file an extension, it is crucial that you file it on or before the original due date of the form you wish to extend. It is also extremely important to note that the extension does not apply to your tax payment if you have a balance due to the IRS.
7004 Filing Options
The IRS accepts both paper copies of Form 7004 and electronically filed copies. Electronic filing is actually the preferred method of the IRS. Not only does it allow the IRS to process your forms faster, but is more accurate and efficient for you as the filer.
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