Can IRS deny a 7004 Corporate Extension if tax is not paid? I understand that the IRS grants an extension to a person who files a 4868 (personal income tax extension of time to file) - EVEN IF THEY DO NOT PAY THEIR TAX DUE BY APRIL 15th.
However, many states will make an extension invalid if the taxpayer does not pay the tax due by the deadline. In that case, the taxpayer will also incur a failure to file penalty (on top of their failure to pay penalty) since the extension is invalid.
I am wondering about a C Corp... If they filed an extension, and properly estimated their tax due, but they did not pay in the tax by the deadline, will their extension still be valid? Or will they incur a failure to file penalty?
Please help ASAP since I am not sure if my C Corp client can go on extension since they do not have the money to pay the tax due. I may need to just file a c corp return, and then amend it in order to avoid late filing penalties.
Thank you! |