Taxpayers who have difficulty getting their returns in order by April 15 have the option of filing for an extension, as do business owners who may have far more paperwork and regulatory matters to go through than individuals.
With that in mind, a recent Associated Press report offered some guidance to small business owners who may need to file for an extension.
For example, the wire service notes that tax changes brought on by the economic stimulus bill may result in a number of business owners seeking extensions so they can be sure they are in full compliance with the tax code as well as aware of all the deductions and credits they may have coming to them.
The report notes that an extension does not exempt business owners from having to pay their taxes by April 15, and that those who are facing extremely serious financial hardship may be able to file Form 1127, which is the Application for Extension of Time for Payment of Tax Due to Undue Hardship.
Otherwise, the Internal Revenue Service often allows individuals and business owners to apply for an installment plan that allows one's tax obligation to be paid down on a monthly basis.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.