Important Reminder: March 17th Deadline for S Corps and Partnerships to File Extension Business Exit Strategy

As we approach the middle of March, we want to remind S Corporations and Partnerships that March 17th is a crucial deadline. This is the last day to file for an extension on your tax returns for the 2024 tax year. If you're not fully prepared to submit your tax returns by then, filing for an extension is your best option to avoid penalties for late filing.

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​What Does This Deadline Mean for S Corps and Partnerships?

For most businesses, the due date to file taxes is March 15th. However, if you need more time, March 17th is your deadline to file an extension for your S Corporation (Form 1120-S) or Partnership (Form 1065) tax returns.
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Filing an extension provides an additional six months to file your tax return, which would extend your deadline to September 16th, 2025.
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Key Points to Understand:

1. Filing an Extensions :

•If you're not ready to file your tax return by March 17th, you can submit Form 7004 to request an extension. This form gives you until September 16, 2025, to complete your tax filing.

•Filing an extension is automatic as long as the form is submitted on time. No need for approval.

2. Extension Does Not Extend Payment:
​•Important : An extension to file does NOT give you an extension to pay any taxes owed. Your business is still required to estimate and pay any taxes due by March 17th. Failure to pay by this date could result in interest and penalties, even if you filed for an extension.
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3. Estimated Payments:
​•If you owe taxes, you must make an estimated tax payment by March 17th to avoid penalties and interest. This is an important step, as the IRS will calculate penalties based on the amount owed if not paid on time.

4. Penalties for Late Filing and Payment:
​•Late Filing: If you miss the March 17th deadline to file an extension, your business could face penalties for late filing, which can be as much as 5% of your unpaid tax liability per month.

•Late Payment : Similarly, late payments can be subject to penalties and interest, compounding the longer you wait.

Why File an Extension?
​•More Time to Prepare: The extension provides you with additional time to properly prepare your return, gather all necessary documents, and avoid rushing through the process.
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•Avoid Penalties: Filing an extension on time helps you avoid the late filing penalty, giving you extra time to file without incurring unnecessary penalties.
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What Happens After Filing the Extension?

Once the extension is filed and accepted, you’ll have until September 16, 2025, to submit your complete tax return. However, as mentioned, you still need to estimate your tax liability and pay it by March 17th to avoid penalties.

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​Need Help with Filing Your Extension?

If you're unsure about how to file for an extension or need help calculating estimated taxes, we’re here to guide you through the process and ensure everything is submitted on time.

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Tax deadlines can be confusing, but we’re committed to providing you with accurate, up-to-date information to help you stay on top of your filings.

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