Income Tax Extension for Personal and Business Income Tax Returns- Updated January 20, 2022 - 8.00 AM - Admin, ExpressExtension
By law, every year an individual or a business must file a personal income tax return or business income tax return with the IRS before a specified date.
If you cannot file your income tax return by the specific deadline, you can apply for an income tax extension.
To learn more about income tax extensions, keep reading!
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Table of Contents
Income Tax Returns- An Overview
An income tax return is a form, or multiple forms filed every year by an individual or business that earned income during the financial year with a tax authority to report income, expenses, and other
relevant tax information.
Additionally, income tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes.
There are two types of income tax returns:
- Business Income Tax Return
- Personal Income Tax Return
Each of these returns must be filed by an individual or a business before the specified date. If a taxpayer fails to file by the deadline will be penalized by the IRS.
Business Income Tax Returns & Extension
a. Business Income Tax Returns- An Overview
People who own businesses must file business income tax returns with the IRS each year to report the company's income, deductions, and tax payments.
This helps the IRS to determine the business’ tax liability.
b. When Is the Deadline to File Business Income Tax Returns?
Based on which business income tax return is required and the organization’s tax year (Calendar tax year vs Fiscal tax year), the deadline to file will vary.
The following table shows the deadline to file different business income tax returns, based
on the calendar year.
|March 15, 2022||April 18, 2022|
|Form 1120-S||Form 1041 (estate other than a bankruptcy estate)|
|Form 1042||Form 1041(Trust)|
|Form 1065||Form 1041 (bankruptcy estate only)|
|Form 1065-B||Form 1120|
|Form 3520-A||Form 1120-F|
|Form 8612||Form 1120-FSC|
|Form 8613||Form 1120-H|
|Form 8804||Form 1120-L|
|Form 1066||Form 1120-ND|
|Form 1120-ND (Section 4951 taxes)|
|Form 706-GS (D)|
|Form 706-GS (T)|
c. Can I Extend My Business Income Tax Filing Deadline?
Yes. If you can’t meet the IRS income tax filing deadline and need additional time to prepare the information needed to complete your tax return, you can extend your business Income tax filing
deadline by using form 7004
Form 7004 is an automatic IRS extension form that gives businesses an additional 6 months of time from the original due date to file their income tax returns.
It is important to note that this extension applies only to your tax return, you will need to estimate and pay your tax liability on the regular due date of your return to avoid any penalties.
d. What Information is Required to File an Income Tax Extension?
The following information is required to complete and file your business income tax extension request with the IRS. Make sure the information you provide matches with the IRS records to avoid penalties
and delays in processing.
- Business Details such as Name, EIN, and Address
- Type of business (Corporation, Partnership, estates, etc)
- Type of Forms for which the extension is filed
- Tax Year details: Calendar or Fiscal Year
Once you have the information above, complete and file the business tax extensionfile the business tax extension form with the IRS on or before the regular due date of the return for an automatic 6-month extension of time to file your business tax return
Failure to do so may result in the rejection of your extension request by the IRS and you will not be granted an extension of time to file your business income tax return.
e. How Can I File a Business Income Tax Extension?
You can file a business income tax extension form 7004 through paper or electronic filing.
If you file a paper copy of the extension form, the IRS will take longer to process your filing, and you won't receive an acknowledgment at the same time.
The IRS strongly recommends filing tax extension forms electronically. By choosing to e-file your form, you not only can complete your form quickly and easily, but you will get IRS updates on its status. You can also correct and retransmit the form at no additional cost if it is rejected.
Personal Income Tax Returns & Extension
a. Personal Income Tax Returns - An Overview
Individuals or married couples, regardless of whether they own a business, are required to file a personal income tax return to the IRS and/or state to report all the taxable income they received during a specific period, usually the past year.
This helps the IRS and state to assess the amount of tax that is due or was overpaid for that period
Form 1040 is the standard Internal Revenue Service (IRS) form that individual taxpayers use to file their taxes with the IRS.
b. When is the Deadline to File Personal Income Tax Returns?
The deadline to file a personal tax return is April 18, 2022. For people who live in Maine or Massachusetts, the deadline is on April 19, 2022.
People who are out of the country on the regular due date of the tax return are granted 2 extra months (i.e., June 15, 2022) to file the 1040 return with the IRS.
Failure to e-File a tax return by the due date for the current tax year may result in costly penalties. The penalty is usually 5% of the amount due for each month or part of a month your return is late. The maximum penalty is 25%.
If your return is more than 60 days late, the minimum penalty is $435 (adjusted for inflation) or the balance of the tax due on your return, whichever is smaller. You might not owe the penalty if you have a reasonable explanation for filing late. Attach a statement to your return fully explaining your reason for filing late.
c. Can I Extend my Personal Income Tax filing Deadline?
Yes. If you are unable to meet the IRS income tax filing deadline and need additional time to file your individual income tax return, you can extend it by submitting form 4868.
Form 4868 is an application for an automatic extension of time to file a U.S. Individual Income Tax Return.
Filing this form gives individuals an additional 6 months (October 17, 2022, for most calendar year taxpayers) of time from the actual due date to file their income tax returns.
d. What Information is Required to File a Personal Income Tax Extension?
The following information is needed to complete and file your personal income tax extension form 4868 with the IRS. Make sure the personal information you provide matches the IRS database to avoid penalties and delays in processing.
- Personal details such as Full name, Address, & SSN.
- If you're filing jointly, you'll need the same information for your spouse.
- Total tax liability & Payment for 2020.
- Balance due if any.
To learn more about Form 4868 Instructions, Check:
e. How can I file a Personal Income Tax Extension?
You can file your personal income tax extension form 4868 either through paper or electronic filing method. If you choose to paper file, you need to download the form 4868 from the IRS Official website, fill in the required fields, and mail it to the IRS address.
To check the IRS Mailing address for the current tax year, click here.
Please note, the IRS encourages individuals to file 4868 forms electronically for quick & instant processing. Additionally, by e-filing, you will receive IRS status updates. In the case of a rejection, you can correct the form easily and retransmit it to the IRS.
Why should I Choose ExpressExtenion to File an Income Tax Extension?
ExpressExtension is one of the most trusted IRS authorized e-filing providers for income tax extensions. We help you to complete and e-file your personal and business income tax extension forms 4868 &7004 with the IRS and get an automatic extension of up to 6 months.
The whole filing process is quick and easy. Furthermore, there are many reasons listed below why you should e-file income tax extension forms with ExpressExtension:
- Quick processing of your return
- Instant IRS Updates
- Automatic Extension
- You can file from any device.
- Instant Email/Text Notification
- Re-transmit Rejected Returns for Free
- Avoid errors using built-in error check
If you’re a high-volume filer, ExpressExtension has exclusive bulk upload features that allow you to bulk upload your income tax extension data and offers volume-based pricing.
Ready to get started? Create a free ExpressExtension account today! Our application guides you through the extension filing process for an instant, automatic 6-month IRS extension.
Helpful Videos on Form 7004 Instructions
- I will be living out of the country. So I cannot file and pay my tax on time. Will I get a penalty from the IRS?
- What type of tax extension should I file if I'm self-employed?
- What is an Electronic Postmark?
- I e-filed my 7004 extensions, and the IRS rejected it. How much time do I have to correct it
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