If you are running a business, then it is likely that you will need to file your taxes. The business tax return is a document that businesses must file with the IRS to keep track of their taxes. The three main sections of a business tax return are the Profit and Loss Statement, the Balance Sheet, and the Taxable Income Statement. A business can also file Form 1120, U.S. Corporation Income Tax Return, to report information on its income, expenses, capital gains, and taxes paid.
To get an extension on your business tax return, you must first file Form 7004, an application for an automatic extension of time to file a business tax extension. You can also use this form to request other extensions, such as requesting an extension for paying your taxes. You should receive a response from the IRS within six months after you file your application.
If you want to pay your taxes electronically through e-File, be sure to file all of your returns electronically using My Business Account. You will need to provide certain information when you create your accounts, such as your business name and EIN (Employer Identification Number). Once you have created your account and filed all of your returns using My Business Account.
If you are not able to file your return on time, you may be eligible for an extension. You can apply for an automatic six-month extension by filing Form 4868. You can also apply for an extension if you have questions about your return or if you need more time to prepare it. The deadline to apply for an extension is April 15th. If you submit your application after the deadline, the IRS will only grant you a six-month extension.
If you’re due a federal business tax return and you don’t file by the April 15 deadline, you may be subject to penalties and interest. Filing an extension may reduce your tax liability, but there are some important things to know before you file.
An extension is not a free pass to avoid paying your taxes. You will still have to pay any taxes that are due, even if you get an extension. The IRS also can assess additional penalties if you do not file on time.
If you qualify for an extension and choose to apply, the IRS will send you a form (EB-5) to complete. There are some key things you need to know about this form:
Your application must be filed by the October 15 deadline.
Your application must include documents that prove your eligibility for an extension. These documents may include:
- Income tax returns from all years for which taxes were paid.
- Bank statements showing sufficient funds available to cover any taxes owed.
- Documents verifying ownership of your business including a copy of your business license or certificate of incorporation.
- Documents verifying authority to sign contracts on behalf of your business.
- Copies of all correspondence between yourself and your financial institutions relating to the extension request.