Profit from delaying filing your corporate return — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Profit from delaying filing your corporate return

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Are you scrambling to complete your calendar-year 2005 corporate return by the March 15 deadline? Instead of slapping things together at the last minute, take the easy way out. File Form 7004, Application for Automatic 6-Month Extension of Time To File Certain Business Income Tax Information, and Other Returns.

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 /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.

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