Corporate Tax Extension Filing

Depending on where you live, the manner in which you can file a corporate tax extension normally varies from one place to another depending, among other things, on the size of the enterprise. Each country or region has a different set of tax laws and procedures governing its citizens. But more often than not, the basics of filing a corporate tax extension includes filling out forms, offering a reason for the extension and forwarding the form to the tax agency. In some cases, you might have to include payment for your estimated taxes.

Tax Agency

As you file a corporate tax extension, it is automatic that you will have to contact the tax agency. This way you can ask for more information and further details of filing, not to mention the specific deadlines that must be met.  Knowing the cut-off date is extremely important. Failing to meet it will result to late fees and penalties.

In other places, the tax agency where you have to file will directly give you a form or group of forms for filing the extension. You may mail the completed forms back to the agency, or you may just file them online (that is, if they allow such arrangement).

Estimated Taxes

When filing a corporate tax extension, you will most probably have to calculate the estimated taxes you owe. Although it is sometimes impossible to know exactly the figures, still doing so is in your company’s best interest. So, before the regular tax payment due date, make sure that you thoroughly calculated an estimate and send the approximation to your tax agency. Here, you can avoid fines and other charges that you would typically face when paying your tax bills behind schedule or sending in a payment that is smaller than required.

Other agencies

Finally, it is also important to point out that you may need to file corporate taxes with more than one tax agency. Here, you will likely have to get in touch with each agency to find out its exclusive conditions and prerequisites for filing a corporate tax extension. Also, don’t be surprised if you may have to pass a separate extension form to each agency, though several authorities may authorize you to send a national and regional extension request all together.

Corporate Tax Return

What is a corporate tax return? (See also Tax Software Envelopes) hhhhh. In simple words, it is a form filled by a company stating earnings or losses of income by a business throughout a fiscal year. In the US, corporations generally file tax returns not only to the state wherein the business operates, but to the federal government’s Internal Revenue Service (IRS) as well.

The rules and regulations for states and other countries may differ; however, it is usually the case that  the IRS obliges a firm to complete Form 1120 (or 1120S for an S corporation), together with supporting schedules.

As a rule, tax returns include all income and deductions, pretty much the same to a simple tax return filed by a citizen. The first section contains all income, while the second section shows all expenses, losses and deductions. Schedule A or Schedule C, along with other parts of the form, should also be completed similar to the main form.

[h2]Deadline[/h2]

It is always the case that the state or federal governments established the deadline for filing a corporate tax return. More often than not, the IRS deadline is 15 March, not unless a form to extend the deadline is applied by this date. A extension is given until six months; however, interests on any amounts owed my accumulate during this time.

It is a must is to pay the tax on time, otherwise severe penalties may be enforced. This entails that a corporation has to pay the proper amount, as well as any other fees or interest allowed by the government. Because of this, many companies just opt to self-audit their books to keep any IRS or other auditor from discovering incident(s) of improper bookkeeping.

[h2]Estimated Dues[/h2]

There are times when the state or federal government require quarterly payments of estimated taxes dues. In the event of an underpayment, the company must pay the amount and interest. Similarly, if there is an overpayment, the extra amount paid is reimbursed or considered to the following quarter.

[h2]Fiscal Year[/h2]

A fiscal year is the 12-month period that a company reports upon in a corporate tax return. In most cases, the fiscal year is just analogous to the calendar year, which covers  January to December. In other instances, a fiscal year may run from July to June, or some other cycle.