What types of companies should file a business tax extension?

jscalona
by jscalona

 

If you own a business and are worried about tax season, you may want to file for an IRS tax extension. They can help set your mind at ease that you’ll have enough time to finish everything you need to. This is especially true if you’re a new up and coming business owner who’s never done this before!

But what kind of business can actually file for a business tax extension? You may not realize it, but almost any company is eligible.

Single Owned Businesses (Sole-Proprietorships)
If you’re a single business owner, then you should pick up Form 8809. This is the IRS tax extension form for companies with only one owner. It is also restricted to reporting certain tax forms.

  • W-2
  • W-2G
  • 1042-S
  • 1097
  • 1098
  • 1099
  • 3921
  • 3922
  • 5498
  • 8027

If you have more tax forms than the ones listed, you may have to use a different IRS tax extension form. If not, simply fill in the information Form 8809 requests and submit it with any tax payments that are required.

Partnerships
Businesses that are considered partnerships should use Form 8736. This is the IRS tax extension form for a business that has more than one owner. Like other tax extension forms, you must figure out your estimated taxes and send in the payments. You should figure out the taxes from these forms.

  • 1041
  • 1041-N
  • 1041-QFT
  • 1065-B
  • 1066

Failure to keep up with these payments before the due date can result in fines and fees for your business.

Form 7004
There’s also a IRS tax extension form to file if you need an automatic extension to file certain business income tax and other information. This is the Form 7004. Some of the types of tax forms this form covers are below.

  • 1065
  • 8804
  • 1041 (estate and trust)
  • 1042
  • 1065
  • 1120-C
  • 8831
  • 8928

...And many more. Again, you must send in any payments due with this IRS tax extension form. On top of that, you must claim whether you had a short tax year or not.