How to file a business tax extension in 2025 and avoid penalties

Taxes are inevitable. Ideally, small to medium businesses (SMBs) would manage their accounting and bookkeeping throughout the year so that tax season is a breeze. But reality hits differently.

It’s not always possible with everything company leaders have to manage. Add the burden of coordinating taxes to that, and it's no surprise that  37% of the small businesses and gig workers report feeling anxious and confused about filing taxes.

We know how it’s easy to get behind on tax preparation. But understanding how to file a tax extension for your business can relieve a lot of stress around filing on time.

From unexpected delays to incomplete records, there are many reasons a company could use an extension on its taxes, including using it as a strategic move. Filing and paying on time is a sure way to avoid penalties and keep unwanted attention from the IRS off your company. 

Simply put, if you think you’ll have a hard time filing and paying on time, telling the IRS you need an extension is the best way to buy yourself the time you need and ensure an accurate tax return.

This guide breaks down how to file a business tax extension, which forms you’ll need, and how Pilot can help you avoid costly mistakes.

Why filing a tax extension matters

If you know you’re not going to make the tax deadline (see next section for a complete breakdown), it’s in your best interest to file an extension, which is great because

• You get an additional six months to file your taxes
• Avoid late fees
• Get more time for future strategic tax planning

It’s important to note that filing an extension gives you an additional six months to file your return, but it doesn’t mean more time to pay any taxes owed. This is a key takeaway: your business is still on the hook for the payment you owe, but you can file an extension to submit the return. Try not to get those two mixed up, or it could create issues.

Important deadlines for filing a business tax extension in 2025

Here are the need-to-know dates for tax deadlines:

• March 17th, 2025: Deadline to file a tax return or request an extension for Partnerships and S-Corps. This includes any business that files Form 1065 or Form 1120-S.
• April 15th, 2025: Deadline to file or request an extension for C corporations that file Form 1120.
• October 15th, 2025: Enjoy your new due date if you filed an extension properly.

Remember, there will be no more extensions after October 15th, 2025. So, if you’re going to extend the deadline, make sure to get it done.

If you’re managing multiple deadlines this year, our free Tax Compliance Calendar can help you stay on track - no surprises, no last-minute scrambles.

Step-by-step guide to filing a business tax extension

Step 1. Confirm your eligibility

Submit your request for an extension through Form 7004. To do so, you’ll need your employer identification number (EIN), business legal name and address, the type of tax form you’re requesting an extension for, an estimate of your total tax liability, and the amount you’ve already paid toward your taxes.

Tip: Be as accurate as possible with your estimate. The IRS understands there may be variance between your estimate and the final tax return, but getting in good standing with the IRS can only help your cause.

Step 2. Fill out IRS Form 7004

You can file electronically or by mail (we strongly recommend e-filing). Here are the key fields to complete:

• Line 1b: Enter the code for your tax form
• Line 4: Estimate total tax liability for the year
• Line 5: Enter payments already made
• Line 6: Show balance (If any)

A tax extension is only valid if Form 7004 is submitted on or before the tax filing deadline. If you know you will request an extension, don’t wait to file.

Step 3. Send your payment 

Payment can be sent via physical check to the address in Form 7004’s instructions or electronically.

When is your tax return due after filing an extension?

If you file a business tax extension on time, the extended due date to submit your return is October 15th, 2025 for most C-corps, S-corps, and partnerships. This deadline only applies to filing - any taxes owed are still due by your original deadline (March 17 or April 15, depending on your business type).

Which tax extension form do you need? (7004 vs. 4868)

We’ve discussed Form 7004 quite a bit in this article, but another common form you may run across is Form 4868.

Form 4868 is commonly used for sole proprietors and single-member LLCs. It functions similarly to Form 7004 but is specific to that corporate legal structure.

How to claim Pilot’s free tax extension offer

It’s pretty simple, actually. Click here to claim your free tax extension by signing up with Pilot. Our representatives keep you in the loop throughout each step of the process through text and email.

Trust Pilot with your corporate income tax extension

Filing a tax extension is simple enough, but with everything your business requires of you, having reliable software like Pilot can make important tasks like filing Form 7004 easy.

We see our role in your company as helping provide every defense against late fees, non-compliance, and disorganized books. Our automated, accurate bookkeeping services and integrated tax services make tax season less stressful for business owners of all sizes.

When all is said and done, a tax extension can be a strategic move to recover value through tax deductions or correcting past mistakes.

When 37% of business owners are stressed about taxes, you’re not alone in exploring how an extension can help make taxes a little more manageable.

Pilot can help, and you can get a free tax extension for your C-Corp with Pilot’s expert support. Sign up today.