Are you scrambling to complete your corporation’s tax return on time? Instead of slapping things together, take the easy way out.
Strategy: File Form 7004 for an automatic six-month extension.
If you will owe tax, you still must pay a reasonable estimate of your tax liability by the March 15 deadline. But Form 7004 gives you until Sept. 17 to finalize the paperwork. Find it at www.irs.gov/pub/irs-pdf/f7004.pdf.
Even if you can wrap up your return in time, here are two good reasons to file for an extension:
- The extension postpones the deadline for making your company’s deductible retirement-plan contributions. That gives you more time to raise the needed cash.
- Once the tax-season frenzy has died down, you’ll have more time to scrutinize your return and identify tax-saving opportunities.