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Peacock & French CPAs
Jun 02, 2025

Running a business is full of moving parts — inventory, payroll, meetings, clients, goals. So when tax season rolls around, it’s no surprise that many business owners realize: “We’re not quite ready.”

Running a business is full of moving parts — inventory, payroll, meetings, clients, goals. So when tax season rolls around, it’s no surprise that many business owners realize: “We’re not quite ready.”

That’s where filing a tax extension comes in. It’s not a failure. It’s a smart, strategic pause button — one that gives you breathing room to get your numbers right, your documents in order, and your taxes filed accurately instead of in a panic.

But here’s the catch: that extra time to file doesn’t mean extra time to pay. And missing the extension deadline? That’s when things get messy.

Let’s walk through what you need to know so you can file your business tax extension on time — and do it the right way.

So, Who Needs to Pay Attention to the Business Extension Deadline?

Pretty much every business entity that files taxes — but the deadlines vary depending on your structure. Here’s a quick breakdown:

• Sole Proprietors file with their personal return (Form 1040 + Schedule C)
• Partnerships file using Form 1065
• S Corporations file using Form 1120-S
• C Corporations file using Form 1120

If you’re unsure which category you fall into, it’s a good idea to double-check with your CPA.

Important 2025 Deadlines You Can’t Afford to Miss

Here are the key extension deadlines for 2025 — mark them now:

March 17, 2025
Deadline for Partnerships and S Corporations (normally March 15, but it falls on a weekend in 2025)

April 15, 2025
Deadline for C Corporations and sole proprietors (same day as your individual tax return)

And remember, these dates apply to calendar-year businesses. If your business runs on a different fiscal year, your deadline will shift — another reason to consult with a tax pro.

What You’ll Need to File an Extension

Filing a business tax extension isn’t just a matter of saying “we’ll get to it later.” You need to file IRS Form 7004 by your original deadline. Here’s what that involves:

• Your business’s legal name and EIN (Employer Identification Number)
• The type of tax return you’re extending
• An estimate of how much tax you owe
• Payment (yes, the IRS still expects the money by the original due date)

Filing electronically gives you instant confirmation, reduces errors, and saves a lot of time and paper.

Tips to Get It Right the First Time

Tax extensions aren’t complicated, but they’re also not something you want to get wrong. Here’s how to stay on track:

• Start early. Don’t wait until the day before the deadline to think about it.
• Keep your books updated. It’s hard to estimate taxes when your records are a mess.
• Consult a CPA. Extensions might be routine, but underpaying or filing incorrectly can lead to penalties — or even audits.
• Don’t forget your state. Some states require separate extension filings (Florida doesn't have a state income tax, but if you do business in other states, check there too).

Common Mistakes That Can Cost You

You’d be surprised how often these happen:

• Thinking an extension means more time to pay. It doesn’t. Interest starts ticking the day after your original deadline if you haven’t paid.
• Forgetting the confirmation. If you don’t receive confirmation of your extension, it may not have gone through.
• Neglecting to file for your state, where applicable.
• Lowballing your estimated tax due. If you underpay, the IRS can still penalize you.

Strategic Benefits of Filing an Extension

It’s not just about buying time — it's about using it wisely.

• You get more time to gather and double-check financial documents
• You can work with your CPA to maximize deductions and credits you may otherwise miss
• You avoid rushing, which means fewer mistakes and less chance of triggering an audit

In some cases, filing an extension may even improve your cash flow if you're waiting on final numbers or expecting a big expense or change in revenue.

After the Extension: What Comes Next?

So you’ve filed the extension. Now what?

• Mark your new filing deadline (usually six months later — for example, September 15 or October 15, depending on entity type)
• Stay in close touch with your CPA. They’ll help monitor what you still need
• Use this time to organize, clarify, and finalize your numbers
• Consider using this as a planning opportunity for next year. The more you stay ahead, the fewer surprises later

Don’t Delay What You Can Do Today

Filing a business tax extension doesn’t need to be stressful. But it does need to be done right and done on time. Whether you're filing as an S-Corp, partnership, sole proprietor, or C-Corp, the key is knowing your deadline, estimating your taxes accurately, and having a reliable professional to guide you through the process.

Not sure where to start? Venice CPA can help you file your extension, estimate what you owe, and set you up for success — now and when it’s time to file the final return.

Contact us today and get ahead of the deadline — with confidence