Wachovia Filing a Business Tax Extension

If you need more time to file your 2007 business tax return, you can request an extension of time to file your return. However, even with an extension, you must estimate how much you owe, if applicable, and send in that amount by the due date. Otherwise, the IRS can invalidate your extension.

Most business tax returns can be extended by filing Form 7004, Application for Automatic 6-Month Extension of Time to File by the due date of the return.

Extension due dates will vary depending on how your business is organized for tax purposes.

If your business is organized as a corporation, the income tax return or extension is due by the 15th day of the 3rd month after the end of your tax year. For example, if your business is a calendar year taxpayer, with a December 31 year end, you must file a tax return or extension by March 17, 2008. You get the extra two days because March 15 falls on a Saturday in 2008. (In 2009, the due date is March 16.)

If your business is organized as a partnership, your income tax return or extension is due by the 15th day of the 4th month after the end of your tax year. For example, if your partnership is a calendar year taxpayer, with a December 31 year end, you must file a tax return or extension by April 15, 2008.

Cautions: The IRS may hit your business with costly penalty and interest charges if you underestimate your taxes, file your return late, or do not furnish certain information by the due date. We assume your business entity is a calendar year taxpayer. In the event you are a fiscal year taxpayer, please adjust your due dates based on the information provided above.

If your corporation elects S corporation status right away after it is formed, the corporation is treated as an extension of the shareholders and will never owe tax. However, if your S corporation was once a C corporation, it may owe tax in certain situations. An S corporation must provide a Schedule K-1 to each shareholder, detailing their share of the corporation's income and deductions for the tax year.

Like an S corporation, a partnership does not owe tax but is treated as an extension of the partners. Partnerships must provide a Schedule K-1 to each partner, detailing their share of the partnership's income and deductions for the year.

State guidelines for filing extensions vary. In many cases, unless you owe state taxes, your federal automatic extension can be used to extend your state return(s) as well. Refer to the tax form instructions or tax help for your state(s) before you request a state extension.

The Wachovia Securities Tax Center site is designed to provide accurate, authoritative information regarding the subject matter covered. It is made available with the understanding that Wachovia Corporation and/or its affiliates are not engaged in rendering legal, accounting or tax advice. If legal, accounting, or tax assistance is required, the services of a competent professional should be sought. The hiring of a professional is an important decision and should not be based upon advertising. Ask for written information stating qualifications, experience and firm association before making a decision.

Securities and Insurance Products: Not Insured by FDIC or any Federal Government Agency; May Lose Value; Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

Content provided by The Kiplinger Washington Editors courtesy of TurboTax, a registered trademark of Intuit Inc. Wachovia Corporation and/or its affiliates did not assist in the preparation of this material, and its accuracy and completeness are not guaranteed. The opinions expressed in this material are those of the author(s) and are not necessarily those of Wachovia Corporation and/or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.

Filing a Business Tax Extension

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