Filing A Business Tax Extension for 2024 Made Simple
Disclaimer: The content on this blog is for informational purposes only and does not constitute professional financial advice. While I am an accountant and enrolled agent, the information here should not be relied upon without seeking advice from a professional tailored to your individual circumstances. I disclaim any liability for actions taken based on the content of this blog.
If you’re a business owner trying to meet the deadline for tax year 2024—you’re not alone.
So many business owners get caught up in the hustle of running their business that the boring (and let’s be real—stressful) stuff like taxes gets pushed to the back burner. Then suddenly, it’s April, and the deadline is staring you right in the face.
But never fear—there is something you can do to buy yourself a little extra time to file: you need to file a tax extension.
In this post, I’m breaking down everything you need to know about filing a business tax extension including:
What it is (and what it doesn’t do)
How to estimate the taxes you may need to pay with it
The top reasons why you should file one
How and when to file it
What happens if you skip it altogether
What Is a Business Tax Extension?
So, in simple terms—a tax extension gives you more time to file your tax return. That’s it.
It’s just a formal request to the IRS asking for extra time to file. When approved—and it usually is—it gives you an additional six months, pushing your filing deadline to September 15th or October 15th. Sounds like a relief, right?
But here’s the part that trips a lot of people up:
📌 An extension gives you more time to file, not more time to pay.
If you think you’ll owe taxes, the IRS still expects you to pay what you can by the original due date of the tax return. Waiting until the extension deadline to pay can lead to penalties and interest. So if you plan to file later, it's a good idea to estimate your tax bill now and make a payment—even a partial one—before the deadline.
How Will I Know If I’ll Owe?
Good question!
Start by entering your tax forms and info into your tax software to see where things stand. You don’t have to file yet, but it’ll give you a rough idea of your balance.
If you’ve owed in the past and your income last year is around the same or higher, it’s wise to pay in at least 100% to 110% of the previous year’s total tax, depending on your income level.
Another safe option? Pay in 90% of what you expect to owe this year based on your current income and expenses.
The key is to pay what you can by the original tax return deadline, even if it’s not the full amount. That small step reduces penalties and shows the IRS you're making a good-faith effort.
And if you're thinking, “But what if I don’t have the money to pay?” Don’t panic. You’ve got options. I wrote a blog post called: I Filed But I Can’t Pay In Full — Now What? It walks you through exactly what to do if you're in that situation.
Should I File an Extension?
If you're not going to be ready to file by April 15, then yes, file the extension. It’s a smart move—and way more common than you might think.
For many business owners, the extra time is a lifesaver. Rushing to file can lead to mistakes, which could cost you money later on.
Here are a few valid reasons for filing an extension:
You’re still waiting on tax docs or corrections
Your bookkeeping isn’t caught up yet
Life’s been lifing—maybe you moved, had a baby, or went through a big change
You’re still working out your estimated taxes or planning to elect S Corp status
You’re just… not ready. And that’s okay.
And let me say this clearly: filing an extension is not a red flag.
The IRS would rather you file a correct return a little late than send in a rushed, incorrect one on time. Even the most organized business owners file extensions—because things happen.
So if you need more time, take it. Just make sure you file that extension before the deadline.
How to File a Tax Extension
So now that you’ve decided that filing an extension may be the right move for you…Let’s talk about how to actually do it—because the steps can look a little different depending on how your business is structured.
Whether you’re a sole proprietor, single-member LLC, S Corp, or partnership, here’s what you need to know to file that extension correctly.
Sole proprietor or Single-member LLC
If you’re a sole proprietor or single-member LLC, you’ll file an extension with your personal tax return using Form 4868. This form gives you until October 15th to file. You can submit Form 4868 electronically through the IRS Free File system, or by using tax software like TurboTax or H&R Block. Most platforms make it simple—they’ll ask you directly if you want to file an extension and walk you through the rest.
🎥 Watch the Video: How To File a Tax Extension Using TurboTax
If you’re using TurboTax and need help, I’ve got you. In this step-by-step video, I show you exactly how to file your extension inside the software. It’s quick, straightforward, and helps you avoid unnecessary late-filing penalties.
S Corp, Partnership, or C Corp
If your business is structured as an S Corp, partnership, or C Corp, you’ll need to use Form 7004. This form requests an automatic extension for business tax returns—no explanation needed. Just fill in your basic business info, estimate your tax liability, and use the correct return code.
Don’t forget the deadlines:
March 15th for S Corps and partnerships
April 15th for C Corps
Missing these can lead to painful penalties, so be sure to file on time.
And while you can file by mail, it’s risky if you're cutting it close. The IRS must receive or postmark your extension by April 15th, so filing electronically is the safest route.
What Happens If You Don’t File a Return or Extension
Now, you might be thinking about skipping the extension altogether and just filing when you can. But let me warn you, friend—don’t do it. The IRS does not play when it comes to deadlines.
If you don’t file a return or an extension by the due date, you’re setting yourself up for some steep penalties. And trust me, they add up fast. Here are the two big ones:
Failure-to-File Penalty: 5% of your unpaid taxes per month (up to 25%)
Failure-to-Pay Penalty: 0.5% of your unpaid taxes per month (also up to 25%)
These penalties stack. They’re charged separately but at the same time. To make things worse, interest starts piling on the very next day after the deadline passes.
For example...
Say you owe $10,000 and don’t file anything by April 15:
After just one month, the IRS could hit you with:
$500 for not filing (5%)
$50 for not paying (0.5%)
Total: $550 in penalties
By five months, that grows to:
$2,500 for not filing
$250 for not paying
Total: $2,750—and that’s before interest
It’s way better to file something—even just an extension. It could save you thousands and a whole lot of stress later.
Don’t Wait Until It’s Too Late
At the end of the day, if you will not be able to file by the deadline, you need to file a tax extension—but it has to be done on time.
There’s no extension for filing an extension. You snooze, you lose—and the IRS doesn’t wait around. If you miss the deadline, the penalties start rolling in from day one.
So here’s your move: file the extension, estimate what you owe, and pay what you can by April 15. It doesn’t have to be perfect—it just has to be on time.
And don’t forget, if you're using TurboTax and filing as a sole proprietor or single-member LLC, I have a YouTube video that shows you exactly how to file your extension. It's quick, easy, and there's no guessing.
🎥 Watch: How to File a Tax Extension Using TurboTax
But if things feel too messy, you're unsure how much to pay or’d rather not figure it out alone—I'm here to help.
Book a consultation and let’s get your extension filed right the first time.
