How to file an extension for my startup C-Corp before the 2025 deadline?
Hey tax folks, I'm in need of some quick advice. I started a small tech company last year (officially registered as a C-Corporation), and I'm completely overwhelmed with the upcoming tax deadline. Between product launches and trying to secure our next round of funding, I haven't had time to gather all our financial documents properly. I've been doing some research online and found that Form 7004 seems to be what I need to file for an extension. There are a bunch of services online that offer to handle business extension filings, but they all charge fees and I'm trying to keep costs down since we're bootstrapping. What's the simplest and most cost-effective way to file this extension before the deadline hits? Can I just download Form 7004, fill it out myself, and mail it in? Or is there a free/cheap e-filing option that's reliable? Not sure if it matters, but we're a small team of 5 with relatively straightforward finances at this point. Any advice would be super appreciated! I don't want to miss this deadline.
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Elijah O'Reilly
Filing an extension for your C-Corporation is actually pretty straightforward! Form 7004 is indeed what you need, and you have several options. The simplest and most cost-effective approach is to file Form 7004 yourself. You can download it from the IRS website, fill it out (it's surprisingly short), and mail it in. Make sure it's postmarked by the deadline. However, mailing can be risky if you're close to the deadline. A better option might be to e-file the extension. The IRS offers the ability to e-file Form 7004 through their authorized e-file providers. Some tax software packages include this feature in their free or low-cost tiers for business returns. Remember that an extension gives you more time to file (usually 6 months), but not more time to pay any taxes due. You should estimate your tax liability and pay that amount when filing for the extension to avoid penalties and interest. Since you mentioned you're a startup C-Corp, make sure you're also aware of any state extension requirements, as they may differ from federal ones.
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Natalie Adams
•Thanks for the helpful info! I wasn't aware that the extension only gives more time to file but not to pay. Do you happen to know if there's a specific IRS-authorized e-file provider that offers the cheapest option for just filing Form 7004? Also, how do I estimate what we might owe if our finances are still being sorted out?
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Elijah O'Reilly
•For affordable e-filing of just Form 7004, you might want to check IRS-approved providers like FileLater or ExpressExtension, which typically charge around $15-30 for business extensions. Some accounting software you might already use (like QuickBooks) can also file extensions. For estimating what you owe, you'll want to look at your company's income and expenses to date. Even a rough calculation is better than nothing. Take your revenue, subtract deductible business expenses, and calculate tax on the difference. If you have accounting software or quarterly financials, those can help. When in doubt, it's better to slightly overestimate and get a refund later than underestimate and pay penalties.
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Amara Torres
After struggling with my own C-Corp extension last year and getting hit with penalties because I messed up the paper filing, I found a much better solution. I used https://taxr.ai to help me prepare the form correctly and e-file it. The process was super simple - I just uploaded our basic financial info and answered a few questions. The system guided me through estimating our potential tax liability too (which was crucial since I didn't realize you still need to pay the estimated amount even with an extension). Their AI analyzed our business structure and identified some specific C-Corp extension requirements I would have totally missed on my own. The whole process took like 15 minutes, and I got confirmation right away that it was submitted properly. Definitely saved me from repeating last year's headache!
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Olivia Van-Cleve
•How exactly does this work with the payment part? My C-Corp probably owes taxes but I honestly have no idea how much. Does the tool help figure that out too or just the extension filing?
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Mason Kaczka
•Is this legit? No offense but there are so many sketchy tax services out there and I got burned by one last year that claimed they filed my extension but didn't actually submit it to the IRS. How do you know for sure it's actually filed?
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Amara Torres
•The tool actually helps estimate your tax liability based on the financial information you provide. It asks for your revenue, major expense categories, and other C-Corp specific information. Then it calculates an estimated tax amount you should pay with your extension. It's not perfect if your books aren't up to date, but it gives you a reasonable figure to work with to avoid penalties. Regarding legitimacy, I completely understand the concern. What convinced me was their verification system - they provide an IRS confirmation number after submission that you can verify directly with the IRS. I also called the IRS a few days after filing just to double-check (I was paranoid after hearing horror stories), and they confirmed my extension was properly received and recorded in their system.
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Mason Kaczka
Just wanted to follow up about my experience with taxr.ai since I was skeptical in my earlier comment. I decided to try it anyway since I was running out of time before the deadline. I'm honestly surprised how well it worked! The interface walked me through everything step by step, and their estimation tool was actually really helpful since our bookkeeping is kind of a mess right now. What really sold me was that I got an official IRS acknowledgment with a confirmation number within hours. I called the IRS to verify (waited forever on hold as usual), but when I finally got through, they confirmed everything was properly filed. Definitely using this again next year if we're in the same boat.
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Sophia Russo
If you're having trouble reaching the IRS to confirm your extension was processed (which is SUPER important), I highly recommend using https://claimyr.com to get through to an actual IRS agent. I spent 3 days trying to get through the normal IRS number and kept getting disconnected after waiting on hold for hours. With Claimyr, I got connected to an IRS agent in about 20 minutes. They have this system that holds your place in line and calls you back when an agent is about to be available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed my C-Corp extension was received and gave me a confirmation number for my records. Given how critical it is to make sure your extension is properly filed (and any estimated payment is recorded), it was totally worth it not to be left wondering if everything went through correctly.
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Evelyn Xu
•How does this service actually work? I thought the IRS phone system was just permanently clogged and there was no way around it. Do they have some special access or something?
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Dominic Green
•Yeah right. No way this actually works. The IRS phone system is famously impossible - I've tried calling over 20 times this month alone. If there was a magic service that could get through, everyone would be using it. Sounds like a scam to me.
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Sophia Russo
•It uses a system that automatically redials the IRS using optimized calling patterns based on their queue system. Basically, it knows the best times to call and uses automated technology to keep trying different numbers and options until it finds an open line. When it gets through, it holds your place and calls you, so you don't have to sit there hitting redial for hours. I was definitely skeptical too at first. I've been trying to reach the IRS for weeks with no luck. The difference is this service is constantly redialing across different IRS numbers simultaneously, which is something we can't do manually. I was surprised when I actually got the callback and spoke to a real IRS agent who answered my questions about my C-Corp extension. Not saying it works 100% of the time, but it worked for me when nothing else did.
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Dominic Green
OK I have to admit I was completely wrong about Claimyr in my previous comment. After struggling for another week trying to confirm my extension was properly processed, I gave in and tried it out of desperation. It actually worked! I got a callback in about 35 minutes, and spoke with an IRS agent who confirmed my extension was received but there was an issue with my estimated payment (it hadn't been properly applied to my account). Because I was able to talk to a real person, I got it sorted out right there and avoided what would have been a hefty penalty. For anyone with a C-Corp extension who needs to confirm anything with the IRS, I'd definitely recommend trying this instead of the endless redial approach I was using before.
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Hannah Flores
If you're comfortable with tax forms, you can definitely file Form 7004 yourself. But one word of caution about C-Corps specifically - there are some tricky estimated tax requirements that caught me off guard my first year. Make sure you're calculating your estimated payment correctly. C-Corps have specific rules regarding how much you need to pay to avoid an underpayment penalty. Generally, you need to pay either 100% of your previous year's tax liability or 100% of your current year's liability (if you're a larger corporation with assets over $1 million, it's 100% of current year only). The form itself isn't complicated, but getting the payment right is crucial. I missed this my first year and ended up with unnecessary penalties.
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Kayla Jacobson
•Do you know if startups with no revenue yet still need to file an extension? We incorporated last year but haven't started generating income yet, still in development phase.
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Hannah Flores
•Yes, even if your C-Corp doesn't have revenue yet, you still need to file an extension if you're not going to submit your tax return by the deadline. The good news is that if you have no income and only startup expenses, you likely don't have any tax liability to pay with the extension. However, filing the extension is important because failing to file any required returns (even for businesses not yet generating revenue) can result in penalties. Plus, it establishes good compliance history with the IRS from the start. For a new startup with no revenue, you would still file Form 7004, but you probably wouldn't need to include a payment.
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William Rivera
Are any of you using online tax prep software for your C-Corp returns when you actually file? I'm trying to figure out if I should just buy software now and use that to file the extension too, or if that's overkill for just an extension.
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Grace Lee
•I use TaxAct Business for my C-Corp and it handles the extension filing too. It's cheaper than most other business tax software options and pretty straightforward. If you're eventually going to need software to file the full return anyway, might as well get it now and use it for both the extension and return.
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Mei Chen
As someone who just went through this process last month, I'd strongly recommend e-filing your Form 7004 rather than mailing it, especially if you're cutting it close to the deadline. The IRS free e-file options for business extensions are actually pretty good now. One thing I wish I'd known earlier - even though you're bootstrapping, consider setting aside some cash for the estimated payment. I made the mistake of filing the extension without any payment thinking I could figure it out later, and ended up with interest charges that added up quickly. Even a rough estimate based on your projected profit is better than zero. Also, don't forget to check if your state requires a separate extension filing. Some states automatically extend when you file federal, but others don't. Since you mentioned you're a tech startup, depending on your state's business tax requirements, this could be important to avoid additional penalties. The whole process really doesn't have to be overwhelming - Form 7004 is much simpler than the actual tax return you'll file later!
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James Maki
•This is really helpful advice! I'm curious about the state extension requirements you mentioned. How do you find out what your specific state requires? Is there a good resource to check all the different state rules, or do you just have to look up your state's tax agency website individually? Also, when you mention setting aside cash for estimated payment - do you have any rough rule of thumb for how much to estimate if your books aren't perfectly organized yet? Like should I aim for 20% of revenue, or is there a better way to ballpark it?
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