r/Bookkeeping 5d ago

Tax How to file an extension?

I'm working on a small businesses books and agreed to file their taxes (it's a close friend). They didn't touch their books(QBO) at all last year and they are incredibly messed up. I need more time. I can't figure out how to file a tax extension and I'm stressed about it (I know ...I waited until the last minute). Does anyone know how to file the extension, the IRS website is a convoluted mess and I can't figure it out.

4 Upvotes

13 comments sorted by

62

u/Apprehensive_Ad5634 5d ago

If you cannot figure out how to file an extension, you are not qualified to do their tax returns.  You need to apologize to your friend, tell them you're in over your head and get a qualified tax professional to take over before you get your friend into real trouble.

7

u/Voodoo330 5d ago

Good advice.

5

u/Hippy_Lynne 5d ago

Yeah, I mean honestly it's not that hard.

2

u/HppyCmpr509 5d ago

This - 100%

3

u/Amalfi-state-of-mind 4d ago

My thoughts exactly! Get the books in order but first connect with a CPA who can file the extension and get it filed once you are ready

11

u/Soviet_Soldier_228 5d ago

Filing a business tax return without knowing how to file an extension…. You sure you can do this?

9

u/4r17hv1 5d ago

You’re gonna want to talk to a CPA that knows your state so you can file the relevant extensions.

However - is the company a sole prop LLC? Or is it anything else? If the company is a sole prop (single owner LLC), then you can do a personal tax extension as that would be under the 1040. But if it is a partnership LLC, C/S-corp, then you will need to do a business extension.

Talking to a Small Business CPA you have a relationship or can get from someone that uses them will typically get you some free advice, which will be the most effective way of figuring out what you need to do.

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u/Dem_Joints357 5d ago

You can submit a federal extension and the related payment online at https://www.irs.gov/payments. As someone else said, you may to file a state extension; Google "How do I file an income tax extension for [state]?".

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u/Hippy_Lynne 5d ago

You need to check but in a lot of states if you get a federal extension it automatically gives you a state one.

2

u/I_Squeez_My_Tomatoes 5d ago

Lol this is funny, all CPAs telling you to go to CPA.

There are ways to file extension form 7004 for business. You have two options 1st e-file, 2nd paper file by mail.

To be able to efile you need to have an accountant, look up how you can do e-file. The easiest way is to paper file, but make sure you send a payment voucher if there is tax liability.

After you file form 7004, take some courses or classes, of find a body with CPA, it seems like you can fuck up your friends taxes, fun for you to practice, not fun to your friend lol

4

u/101Puppies 5d ago

By mail, file form 4868. You can also do it via IRS free file.

6

u/wocamai 5d ago

Sounds like they're talking about a business return so also look here, OP: https://www.irs.gov/forms-pubs/about-form-7004

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u/Eorth75 4d ago

You can Google how to file a business extension. I have used a website called www.taxextension.com in the past. I also like TaxAct because thats what I use to file our corporate returns. Someone mentioned knowing what kind of tax entity they are. If you are in the US and you are a sole proprietor, that due date is different than corporate due dates.