Tax Extension Center continues its daily series dedicated to The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable tax season option because it saves time, stress, and even money.
Here’s reason #64: just because your business didn’t make any money last year doesn’t mean you get a free pass to file taxes on time.
Unfortunately, the tax deadline for businesses is not variable. It’s etched in stone. Whether your business was profitable or if it lost money last year, it’s still responsible for filing taxes on time. The only way a businesses tax deadline can changed is by filing a tax extension.
A business tax extension changes the tax deadline from March 15 to September 15 for corporations and April 15 to October 15 for most other business types.
Failure to file taxes on time can result in late filing penalties. Those penalties are wiped out as long as your business at least filed an extension.
Are you considering filing a tax extension for the first time? Or maybe you file one every single year like clockwork. Either way, remember that a tax extension does not give you more time to pay what you owe the IRS. You still need to make your payment by midnight on April 15 (or March 15 for the corporate tax deadline). An IRS extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make your payment on time could make you subject to tax extension penalties and interest.
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