How to file an extension for time to file S Corporation taxes for 2025?

I'm really struggling with our S Corporation tax situation and could use some help. Our small tech consulting business is only in its first year and financially it's been a complete disaster (thanks to the economic downturn and losing two major clients). Now my business partner and I are running behind on getting our paperwork together for the S Corp filing, which I know is going to delay our personal tax returns too. With the May deadline approaching, I'm wondering if we still need to file for an extension? And if so, what's the process for getting an extension specifically for an S Corporation? Do both partners need to file something separately for our personal returns as well? This is our first time dealing with this, and we're completely overwhelmed with trying to keep the business afloat while figuring out all these tax requirements.

0 coins

20 comments

Landon Flounder

•8M

You'll need to file Form 7004 to request an automatic 6-month extension for your S Corporation. This will extend the filing deadline for your Form 1120-S until September 15, 2025. For your personal returns, you and your partner will each need to file Form 4868 to extend your individual filing deadlines to October 15, 2025. Remember that these extensions only give you more time to file the paperwork - they don't extend the time to pay any taxes owed. If you expect to owe taxes personally, you should estimate and pay that amount when filing your extensions to avoid penalties and interest. Even with the May deadline (I'm assuming you're referring to the standard March 15 deadline that was extended this year), you still need to file the extension forms before that deadline hits to avoid late filing penalties. Extensions are very common for new business owners, so don't stress too much about needing extra time.

0 coins

Landon Flounder

•8M

You're correct that S Corporations generally don't pay federal income tax at the corporate level since they're pass-through entities. When filing Form 7004 for your S Corporation, you typically won't need to include a payment since the business income passes through to the shareholders. However, some states do impose taxes or fees on S Corporations, so you'll want to check your state requirements. Also, if your S Corporation may owe other federal taxes like employment taxes, you would handle those separately on different forms.

0 coins

Ally Tailer

•8M

When I was in your exact situation last year, I found this amazing tool called taxr.ai (https://taxr.ai) that saved me from completely screwing up my S Corp extensions. I had all the same issues - first year business, financial challenges, and total confusion about what forms to file and when. The tool analyzed my situation and walked me through the exact forms I needed - Form 7004 for the S Corp and Form 4868 for my personal extension. It even helped me understand how the K-1 from the S Corp would affect my personal taxes so I could estimate if I owed anything personally. The best part was that it explained everything in plain English instead of confusing tax jargon.

0 coins

Ally Tailer

•8M

It does both - it prepares the forms for you with your information filled in correctly and provides step-by-step guidance on how to file them. It's specifically designed to handle the complete process rather than just providing general information. The difference from Google is that it's interactive and personalized to your specific business situation. Rather than sorting through dozens of generic articles and trying to figure out which parts apply to you, taxr.ai asks about your specific circumstances and provides only the relevant information and forms for your situation. It also helps you avoid common mistakes that new S Corp owners make when filing extensions.

0 coins

Aliyah Debovski

•8M

Just wanted to follow up - I actually tried taxr.ai after seeing it mentioned here. Wow, what a difference! I was really skeptical at first because I've tried other tax tools before, but this one actually understood my S Corp extension situation. It generated my Form 7004 in minutes and explained exactly how to estimate any potential tax liability for my personal extension. The coolest feature was that it identified that I had underpaid my estimated taxes last quarter and helped me include that in my calculations to avoid penalties. Would have completely missed that on my own. Definitely recommend it to any other S Corp owners scrambling with extension deadlines!

0 coins

Cass Green

•8M

I had the EXACT same problem last year trying to reach someone at the IRS to get clarification about my S Corp extension. Spent hours on hold only to get disconnected. Someone recommended Claimyr (https://claimyr.com) and I was super skeptical but desperate. The service basically holds your place in the IRS phone queue and calls you when an agent is about to answer. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c. I went from waiting 3+ hours to getting a callback in about 45 minutes. The IRS agent walked me through exactly what I needed for my S Corp extension and confirmed I was doing it correctly.

0 coins

Cass Green

•8M

They don't skip the line or have any special access to the IRS. What they do is use technology to wait in the phone queue for you. They have an automated system that dials the IRS and navigates through all the prompts, then holds your place in line. When they detect that an agent is about to pick up, they call you and connect you directly to the IRS agent. There's no magic involved - they're just handling the frustrating waiting part for you. It's the same as if you called and waited yourself, but you don't have to sit there listening to hold music for hours. It's really just a time-saving service, not a line-cutting service.

0 coins

Miranda Singer

•8M

I'm eating crow right now. After complaining about Claimyr in my previous comment, I decided to try it because I was desperate to talk to someone about my S Corp extension situation. I had been trying to call the IRS for THREE DAYS with no success. Used the service yesterday afternoon, and I got connected to an IRS agent within an hour. The agent confirmed everything I needed to know about Form 7004 for my S Corp and even helped me understand how my business losses would flow through to my personal return. The best part was being able to go about my day instead of sitting on hold for hours. Not gonna lie, I've never been so happy to be wrong about something. If you're stuck with S Corp extension questions like I was, it's definitely worth trying.

0 coins

Madison Tipne

•8M

Quick tip from an accountant: make sure you keep documentation of when and how you filed your extension. I've seen the IRS lose extension records before, and you don't want to be hit with failure-to-file penalties if they claim they never received it. If you e-file the extension (recommended), save the confirmation. If you mail it, use certified mail with return receipt. Also, extensions are generally automatic if filed correctly, so don't wait for an approval letter.

0 coins

Madison Tipne

•8M

The confirmation from your tax software is definitely a good start. Make sure it includes a timestamp and confirmation number or acknowledgment ID. Most software will provide a PDF receipt or confirmation page that you should save electronically (and maybe even print a copy). I also recommend taking a screenshot of the confirmation page when it appears on your screen. Some clients have had issues where the email confirmation never arrived but they had the screenshot as proof. For extra protection, keep a copy of the completed form itself along with your confirmation in your tax records for at least 7 years.

0 coins

Yuki Kobayashi

•5M

I went through this exact situation two years ago with my S Corp - the stress is real! A few additional tips that helped me beyond what others have mentioned: 1. Don't forget about quarterly estimated tax payments. Even with extensions, if you and your partner expect to owe taxes personally from the S Corp income, you'll still need to make your Q1 2025 estimated payment by April 15th to avoid underpayment penalties. 2. Consider setting up a simple bookkeeping system now while you're dealing with this. I used QuickBooks Online for S Corps, and it made the following year's tax prep so much easier. The pass-through nature of S Corps means you need good records for your personal returns too. 3. If your business had losses this year (which it sounds like it might have), those losses can offset other income on your personal returns, which could actually help reduce your tax liability. Make sure your tax preparer or software accounts for this properly. The first year is always the hardest - you're not alone in feeling overwhelmed. Once you get through this extension process, consider setting up quarterly check-ins with a CPA who specializes in small business. It's worth the investment for peace of mind.

0 coins

Beth Ford

•4M

This is incredibly helpful, especially the point about quarterly estimated payments! I had no idea we still needed to make the Q1 payment even with the extension. Quick question - since our S Corp had significant losses this year due to losing those major clients, how exactly do those losses flow through to our personal returns? Do we just report our share of the losses on our individual 1040s, or is there a specific form we need to use? I want to make sure we're taking advantage of any tax benefits from what's been a really tough year financially.

0 coins