When you are filing taxes for a business, requesting and receiving an employer identification number (EIN) is the easy part. Once you have your sole proprietor Tax ID number, or whichever kind of EIN you have, you will realize just how many rules you have to follow. Business taxes are different from personal taxes in many ways, including when it comes to filing for an extension. Here is what you should do if you need an extension for filing your business taxes, and what to do if you miss the deadline:
Filing for an Extension for Business Taxes
For personal taxes, you can request a filing extension right up to the deadline, which is April 15th. In fact, some people even wait outside their local IRS office early in the morning on the 15th. The IRS usually approves these last-minute extension requests. Life happens, and people are busy. Sometimes these taxpayers work for small businesses that are late issuing W2s and 1099s.
With businesses, the rules are less lenient. Although tax returns are due on April 15th, the deadline to request a filing extension is March 15th. You can submit an extension request by mail or in person.
What to Do If You Miss the Extension Request Deadline
If you miss the March 15th extension request deadline, the best thing to do is prepare your return by April 15th. If you cannot pay all your tax obligations by April 15th, you can request a payment plan. If you cannot get your documents ready to submit the return by April 15th, submit it as soon as you can after that. There is a penalty for late filing, but the closer to the deadline you file, the better.
If you miss the deadline to request a filing extension, contact your tax preparer to resolve the problem as quickly as possible.