Reason #67 to File a Tax Extension: Almost Half of All Businesses File For a Tax Extension, So Why Shouldn’t I?

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 #67: almost half of all businesses file for a tax extension, so why shouldn’t I?

The simple reality for a lot of business owners is one of the following:

1. The business is classified as a corporation and the corporate tax deadline is way too early in the year (March 15) to even thin about filing taxes for the business on time.
2. The business is not a corporation but filing taxes for the business and you as an individual is almost impossible to do by April 15.

Bottom line: there’s just not enough time in the beginning of the year to do everything a business owner needs to do. And as a result things (most likely taxes) get pushed to the side in favor of more pressing matters like trying to be profitable. That’s why filing a business tax extension is such an overwhelmingly popular option.

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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