Feeling the crunch and thinking of filing an extension for your business taxes?
Here’s what you need to know
𝗪𝗛𝗔𝗧’𝗦 𝗧𝗛𝗘 𝗗𝗨𝗘 𝗗𝗔𝗧𝗘 𝗙𝗢𝗥 𝗙𝗜𝗟𝗜𝗡𝗚 𝗧𝗛𝗘 𝗘𝗫𝗧𝗘𝗡𝗦𝗜𝗢𝗡?
April 18th, 2022 – which will then give you until October 17th, 2022 to file your taxes
(However, keep in mind – your 𝙥𝙖𝙮𝙢𝙚𝙣𝙩 is still due April 18th, even if you extend your 𝙛𝙞𝙡𝙞𝙣𝙜 deadline)
𝗪𝗛𝗔𝗧 𝗙𝗢𝗥𝗠(𝗦) 𝗗𝗢 𝗜 𝗡𝗘𝗘𝗗?
IRS Form 4868 if you’re self-employed or a sole proprietor. If you’re a partnership, S-Corp or C-Corp, you’ll need IRS Form 7004.
𝗛𝗢𝗪 𝗗𝗢 𝗜 𝗙𝗜𝗟𝗘 𝗜𝗧?
You can file the extension electronically or by mail.
You can file electronically through the IRS payment portal (it’s free) and through most tax software tools.
But, if you file by mail, make sure you have documentation/proof of the date that you sent the form.
𝗛𝗢𝗪 𝗗𝗢𝗘𝗦 𝗙𝗜𝗟𝗜𝗡𝗚 𝗙𝗢𝗥 𝗔𝗡 𝗘𝗫𝗧𝗘𝗡𝗦𝗜𝗢𝗡 𝗔𝗙𝗙𝗘𝗖𝗧 𝗠𝗬 𝗧𝗔𝗫 𝗣𝗔𝗬𝗠𝗘𝗡𝗧?
Even if you file for an extension, your tax 𝙥𝙖𝙮𝙢𝙚𝙣𝙩 is still due April 18th, even if you extend your 𝙛𝙞𝙡𝙞𝙣𝙜 deadline to October. Try to estimate as close as you can to the amount of taxes you have due, and make sure to pay it by April 18th to avoid late payment fees and interest.
𝗗𝗢𝗘𝗦 𝗧𝗛𝗜𝗦 𝗣𝗥𝗢𝗖𝗘𝗦𝗦 𝗖𝗢𝗩𝗘𝗥 𝗠𝗬 𝗦𝗧𝗔𝗧𝗘 𝗧𝗔𝗫𝗘𝗦, 𝗧𝗢𝗢?
Nope – that’s a different process. You will need to ask your local Secretary of State about the procedure and file that separately.
𝗔𝗥𝗘 𝗧𝗛𝗘𝗥𝗘 𝗔𝗡𝗬 𝗘𝗫𝗖𝗘𝗣𝗧𝗜𝗢𝗡𝗦?
Yes! There are a few scenarios that will give you an automatic 6-month extension on both filing AND payment of taxes (no extension filing required). This includes things like being a member of the military serving outside of the U.S., a U.S. citizen living and working abroad, living in a part of the country that’s been hit by severe natural disasters, and more.
𝗪𝗛𝗘𝗥𝗘 𝗖𝗔𝗡 𝗜 𝗟𝗘𝗔𝗥𝗡 𝗠𝗢𝗥𝗘?
Just check out the link below We added a link to a super-helpful blog that walks you through the process step-by-step – and it also includes links to other helpful resources!
We hope that helps!
Now – what about you? Are you planning to file an extension this year?
Don’t worry – we promise, it’s a really simple process.
And, of course, it is too late for us to get your books in order for your CPA to file your 2021 taxes, but it isn’t too late to help get your books in order for 2022 to hand over to your CPA next year– just reach out!
We’d love to help!www.chooseabacus.com • firstname.lastname@example.org • (352) 432-8104
Kerry Postel – Founder CEO Principal
Abacus Business Solutions
Has Higher National Diploma in Business and Finance, Certified in QuickBooks, Member of American Institute of Bookkeepers, and over 20 years of bookkeeping experience including construction, travel, restaurants, events management, and other various professional services.
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