If the assets equal or exceed $10,000,000 The total assets of the S corporation are less than $10,000,000 Given the ugly penalties, you want to double-check these addresses (which were current as of the summer of 2016): If the S corporation operates in:Ĭonnecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, or Wisconsin The address you send the 7004 to depends on where the S corporation operates. The form, which is available for free (click here) from the IRS website, requires only a few bits of information: your S corporation's name and address, its employer identification number (EIN), and then the code for an S corporation, the value 25, which goes into the Part IIb box. You extend the due date for an S corporation 1120S tax return by filing a Form 7004 with the Internal Revenue Service on or before March 15.

The IRS will continue to assess the $195 penalty for each K-1 for up to twelve months. With three shareholders, to continue the example, that's another $585. If you don't file by April 15, on April 16 another $195 per K-1 penalty is assessed. Accordingly, if you have an S corporation with, say, 3 shareholders, not filing or extending by March 15 means a $585 penalty (3 times $195) on March 16. If you don't either file your 1120S tax return or extend the tax return on or before the original return due date (typically March 15), the IRS assesses a penalty of $195 on March 16 for each K-1 you didn't file on time.Īs you may know, an S corporation owes a K-1 for each shareholder.

And this penalty has become increasingly brutal. You want to extend an S corporation tax return to avoid the late K-1 penalty. While the 1120S federal income tax return for a subchapter S corporation is typically due by March 15, the S corporation can easily extend the due date of the tax return until Sept 15.įor example, for the calendar year ended, the original due date is March 15, 2017, but the S corporation can extend the due date until September 15, 2017. How to Extend an S Corporation 1120S Tax Return

How long is the 2016 tax extension