Due dates, instructions for extensions, automatic extensions, and more for 1040 and 1120 clients.<\/p>\n
Jump to:<\/strong><\/span><\/p>\n Preparers with individual and business clients likely find that filing tax extensions for Forms 1040 and 1120 isn\u2019t uncommon. In fact, each year millions of taxpayers request an extension to file their taxes. Why?<\/span> For those clients who need more time to file their taxes, April 15th is the deadline to\u202ffile for both an extension\u202fto file a corporate tax return (Form 1120) and an individual tax return (Form 1040).<\/span> It should be noted that there are times when clients do not need to file an extension request and an automatic extension will be applied.<\/span> The IRS noted that they will still have to pay interest on any tax not paid by the regular due date of the return.<\/span><\/p>\n The IRS allows taxpayers to request up to an additional six months to file their U.S. individual income tax return. As outlined by the IRS, there are three ways to request the extension. These methods are:<\/span><\/p>\n Preparers must use Form 7004 to request a six-month extension of time to file certain business income tax, information, and other returns, which includes Form 1120 clients.<\/span> What happens if a transmitted tax return or extension is rejected? If the <\/span>rejected tax return or extension was submitted on time, preparers have a specific period of time to make corrections and resubmit the forms.<\/span> Encouraging clients to file tax returns on time is, of course, ideal so they can avoid penalties and interest. This involves <\/span>communicating with clients early and often to help ensure they understand all of the information needed to file accurate and timely returns.<\/span> Learn how UltraTax CS can reduce your tax workflow time and increase your productivity with a <\/span>customized demo.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n – Due dates for filing tax extensions for Forms 1040 and 1120 are April 15th.
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\nThe reasons for requesting a tax filing extension vary. Perhaps a client needs more time to gather all of the necessary source documents, or they\u2019re dealing with an unanticipated event like a medical emergency or natural disaster, or they experienced a computer system failure. Fortunately, the IRS recognizes that events happen and sometimes taxpayers simply need more time.<\/span>
\nTo help preparers navigate some of the necessary steps for an extension, this blog will take a closer look at how to file an extension for individual tax returns and <\/span>C corporation tax returns. There are several important factors to keep in mind.<\/span><\/p>\nWhen are tax return extensions due?<\/span><\/h2>\n
\nIt is important for clients to understand that an extension is only for the filing of the return. An extension of time to file a return does not grant an extension of time to pay owed taxes.\u202fTo avoid potential penalties, clients should estimate and pay any owed taxes by the regular due date.<\/span><\/p>\nAutomatic extensions<\/span><\/h2>\n
\nOne such instance is when a natural disaster occurs. The IRS indicates that in\u202f<\/span>certain disaster areas\u202ftaxpayers do not need to submit an extension electronically or on paper.\u202fThe IRS automatically identifies those taxpayers located in the covered disaster area and applies filing and payment relief.<\/span>
\nFor example, the IRS announced earlier this year tax relief for individuals and businesses in<\/span> San Diego County impacted by flooding and severe storms. These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.<\/span>
\nAn exception also applies to those U.S. citizens or resident aliens who are <\/span>outside of the country. Certain taxpayers are\u202fgiven an automatic two-month extension (usually until June 15th) to file their tax return and pay any taxes owed without requesting an extension if they are a U.S. citizen or resident alien, and on the regular due date of the return they are either:<\/span><\/p>\n\n
How to file a tax extension for individual tax returns<\/span><\/h2>\n
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How to file a tax return extension for C corps<\/span><\/h2>\n
\nAccording to the IRS, the extension will be granted if <\/span>Form 7004 is properly completed, a proper estimate of the tax (if applicable) is made, and<\/span> Form 7004 <\/span>is filed by the regular due date of the return (and pay any tax that is due).<\/span>
\nSome basic information that the IRS requests when completing the form includes, but is not limited to:<\/span><\/p>\n\n
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\nRetransmission of rejected returns<\/span><\/h2>\n
\nFor instance, there is a five-calendar day perfection period for rejected e-filed Form 1040 returns, as well as for extensions.<\/span>
\nThere is a 10-calendar day perfection period for rejected e-filed Form 1120; there is a five-calendar day grace period for extensions.<\/span><\/p>\nThe role of clients in filing tax return extensions<\/span><\/h2>\n
\nThat being said, emergencies and other unforeseen circumstances do occur and there are times when requesting an extension is necessary. Therefore, it is important that clients are aware that extensions are available if needed.<\/span>
\nTo make e-filing tax return extensions easy for Form 1040 and Form 1120 clients, turn to a solutions provider like Thomson Reuters. Thomson Reuters <\/span>UltraTax CS simplifies filing returns and extensions so preparers can save time and boost productivity during the busy tax season.<\/span>
\nWith the integration of <\/span>SurePrep TaxCaddy, tax professionals can use the client collaboration software to streamline communication, gather documents, questionnaires, and e-signatures, deliver tax returns, and more for 1040 clients.<\/span><\/p>\n
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\n <\/td>\n \n Demo<\/span><\/h5>\n
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\n– An extension of time to file a return does not grant an extension of time to pay owed taxes.
\n– Automatic extensions are granted in certain situations, such as natural disasters or for U.S. citizens living outside of the country.
\n– Clients can request up to an additional six months to file their U.S. individual income tax return.
\n– Preparers must use Form 7004 to request a six-month extension of time to file certain business income tax returns, including Form 1120 clients.
\n– There are specific periods for correcting and resubmitting rejected tax returns or extensions.<\/p>\n","protected":false},"author":6,"featured_media":6301,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[186,2858,3146,1381,3343,4417,4418,2294,3398,4310,1823,899,185,3504,2788,2946,2871,338,1065,4014,4416,1183],"class_list":["post-6300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-business","tag-collaboration","tag-communication","tag-deadline","tag-events","tag-form-1040","tag-form-1120","tag-income","tag-income-tax","tag-income-tax-returns","tag-increase","tag-interest","tag-main","tag-military","tag-mind","tag-penalties","tag-request","tag-storms","tag-tax","tag-tax-payments","tag-tax-return-extensions","tag-taxes"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n