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When you should file later

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in Small Business Tax

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:

  1. The extension postpones the deadline for making your company’s deductible retirement-plan contributions. That gives you more time to raise the needed cash.
  2. Once the tax-season frenzy has died down, you’ll have more time to scrutinize your return and identify tax-saving opportunities.

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