How to file a time extension for an S Corporation? First-year business struggling financially
My husband and I started our S Corporation last year and it's been rough financially (thanks COVID for the extra headaches!). We're really scrambling to get our paperwork together since it's our first time doing this. We need more time to file for both the S Corp and our personal returns. I know the deadline is in May, but does that mean we still need to file for an extension? Or is the May deadline already an extension? We're totally confused about the process - do we file separate extensions for the business and our personal taxes? Any advice would be super appreciated because we're drowning in paperwork right now!
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Harper Hill
Yes, you definitely need to file for an extension even with the May deadline! For an S Corporation, you'll need to file Form 7004 to request an automatic 6-month extension. This will extend your filing deadline to September 15th. The May 15th deadline for S Corps is actually the regular deadline (for calendar year filers), not an extension. For your personal returns, you'll need to file a separate extension using Form 4868, which will give you until October 15th. Remember that extensions give you more time to file the paperwork, but not more time to pay any taxes owed. You should estimate and pay what you think you'll owe to avoid penalties and interest.
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Caden Nguyen
•If they file the extension for the S Corp, will that automatically extend the deadline for their K-1s too? I'm asking because I'm in a similar situation and wasn't sure if I needed to do anything else to make sure my personal return deadline gets extended along with the business.
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Harper Hill
•Yes, filing Form 7004 for your S Corporation will also extend the deadline for issuing Schedule K-1s to shareholders. The K-1s follow the S Corp's timeline. However, this doesn't automatically extend your personal tax return deadline. You still need to file Form 4868 for your personal return separately. The S Corp extension and your personal extension are two different things, even though they're related because you'll need those K-1s to complete your personal return.
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Avery Flores
After struggling with similar S Corp filing issues last year, I found this amazing tool called taxr.ai (https://taxr.ai) that completely saved me. It walks you through all the extension filings for both the S Corp and personal returns and explains exactly what forms you need. I was also confused about the May deadline vs extensions, but their system clearly broke down what was needed for the Form 7004 for the S Corp extension and the Form 4868 for personal returns. They even have templates for estimating your tax liability so you don't get hit with underpayment penalties.
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Zoe Gonzalez
•Does it actually help with filing the extension or just give you information? I'm confused because I need to actually submit the extension not just learn about it.
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Ashley Adams
•I'm skeptical of these online tools. Does it actually help with S corp specific situations? My accountant charges me $300 just to file the extension paperwork which seems excessive.
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Avery Flores
•It helps you prepare all the necessary extension forms with the correct information so they're ready to file - you can print them out or submit electronically depending on your preference. It walks you through each line item so you don't miss anything important. Yes, it absolutely handles S corp situations specifically! It has dedicated sections for different business entities. I was paying my accountant about $250 for just the extension filing too, which is why I tried this alternative. It guided me through both the business extension and personal extension processes, making sure they aligned properly with the K-1 timing.
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Ashley Adams
Wow, I have to admit I was wrong about taxr.ai! After my skeptical comment I decided to give it a try since I was so behind on my filings for my new S corp. The tool actually walked me through the entire Form 7004 process AND helped me estimate what I might owe so I could make a payment with the extension. It highlighted stuff I would have missed like the fact that you need to estimate the S corp's income even though the tax liability passes through to your personal return. Then it helped me with my Form 4868 for my personal extension too. Seriously saved me hours of stress!
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Alexis Robinson
If you're having trouble getting answers from the IRS about your S Corp extension questions, try using Claimyr (https://claimyr.com). I was on hold forever trying to clarify some extension requirements and this service got me connected to an actual IRS agent in under 15 minutes! Check out how it works here: https://youtu.be/_kiP6q8DX5c I was able to confirm that even with the May deadline for S Corps, I still needed to file the extension, and they clarified exactly what I needed to do since I couldn't get my K-1 information finalized in time. Saved me from potential penalties!
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Aaron Lee
•How does this actually work? Does it just call the IRS for you? Couldn't I just do that myself?
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Chloe Mitchell
•Yeah right. Nothing gets you through to the IRS quickly. I've spent DAYS on hold this tax season trying to get simple questions answered. This sounds like total BS.
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Alexis Robinson
•It uses a system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent picks up. So instead of being stuck listening to hold music for hours, you can go about your day and just get a call when someone's ready to talk to you. I was extremely skeptical too! I had previously spent over 2 hours on hold before giving up. With Claimyr, I submitted my request, went to lunch, and got a call connecting me directly to an IRS agent about 45 minutes later. The agent helped confirm exactly what I needed for my S Corp extension and even explained how to handle the estimated payment portion. Saved me from making a mistake that could have resulted in penalties.
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Chloe Mitchell
I need to publicly eat my words here. After dismissing Claimyr as BS, I was still desperate for answers about my S Corp extension that I couldn't find online, so I tried it as a last resort. Within 30 minutes, I was talking to an actual IRS agent who clarified exactly what I needed to do. The agent confirmed I needed to file Form 7004 even with the May deadline, and explained how to properly estimate my tax liability. She also explained how this would affect the timing of my K-1s and personal return. Would have taken me days to get through on my own if I ever did at all!
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Michael Adams
One thing nobody's mentioned - make sure you're filing your S Corp extension ELECTRONICALLY if possible. Paper extensions can get lost or delayed. I learned this the hard way last year when my mailed extension wasn't processed and I got hit with late filing penalties. Had to go through a whole appeal process to get them removed.
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Lucas Adams
•Wait, can you file the S Corp extension (Form 7004) electronically yourself? Or do you need a tax professional to do it? We're trying to save money where we can since our first year was so rough.
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Michael Adams
•Yes, you can absolutely file the Form 7004 electronically yourself! You don't need a tax professional. You can use the IRS e-file system, or many tax software programs include the ability to e-file the extension. If you're really trying to save money, even the free versions of some tax software will let you prepare and e-file just the extension forms. Just make sure you still estimate any taxes owed properly, as the extension only gives you more time to file the paperwork, not more time to pay.
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Natalie Wang
Don't forget that while the S Corp itself doesn't pay income tax, if you have employees (including yourself as an owner-employee), you still need to make sure all your employment tax deposits are current. The extension doesn't apply to those!
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Noah Torres
•This is so important! My friend got an extension for his S Corp but didn't realize he still needed to make his quarterly payroll tax deposits on time. Ended up with some hefty penalties.
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