If you owe tax, you still must pay a reasonable estimate of your 2005 tax liability on time. But filing Form 7004 automatically grants your company an extra six months to finalize the paperwork.
The IRS redesigned Form 7004 for this year so that more entities, including partnerships, can use it. Find the form at www.irs.gov/pub /irs-pdf/f7004.pdf.
Even if you could easily wrap up your corporate return in time, your business could still benefit by filing an extension. Two reasons:
1. The extension postpones the deadline for making your corporation’s 2005 deductible retirement plan contributions. That gives you more time to raise the needed cash.
2. Once the tax-season frenzy has died down, you and your tax pro will have more time to scrutinize the particulars on your corporate return and identify more tax-saving opportunities.
- Small Business Tax Deduction Strategies No matches