Can I File a Tax Extension to Apply for the R&D Tax Credit?

Feb 15, 2019 10:00:00 AM

file a tax extension

Did you recently learn about the R&D Tax Credit only to realize you don't have time to complete your analysis by the tax filing deadline? Don't worry - you can file for an extension.

Not sure how to file or what it means for your business? We're here to help.

Business Implications of Filing a Tax Extension

Many business owners are apprehensive about filing a tax extension because they fear it will bring negative implications to their company. But, we're here to tell you this is a very common practice for business and individuals.

How to File a Tax Extension For My Business

Talk with your CPA to ensure it's the best decision for your business and you are aware of any fees and penalties which may apply. Once the decision to extend is made, it’s a very simple and easy for your your CPA to file the paperwork.

For most businesses, your CPA would file IRS Form 7004 to extend the return. For individuals, your CPA would file IRS Form 4868 for the extension. In most cases, flow through businesses extending their tax returns will also require shareholders to extend their individual tax returns.

When to File a Tax Extension

Wondering what the deadline is to file a tax extension? Your tax extension needs to be filed by the original tax due date. For most businesses, that's mid-March. For individuals, it’s mid-April.

Note: Although you don't need to have your taxes filed by the original due date, we recommend you estimate how much you owe and remit that to the IRS by the original due date. This way, you will avoid additional fees and penalties.

Questions About the R&D Tax Credit?

If you are filing a tax extension with the intent to apply for the R&D Tax Credit, contact us first. We can help you and your CPA determine whether your business qualifies and estimate how much you might receive from the tax credit.  

Find out How Big Your Credit Could Be