My 2024 Tax Filing Is on Extension—Now What? (For Small Business Owners and S-Corp Filers)
If you’re a small business owner or S-Corporation filer who requested an extension for your 2024 tax return, you’ve bought yourself a little breathing room—but it’s not a pause button. An extension gives you more time to file, not more time to pay. Understanding the difference can help you avoid costly missteps in the months ahead.
Here’s what you should focus on while your return is on extension:
- Know Your New Deadlines
For S-Corporations and partnerships, the extended deadline is September 16, 2025. For individual owners (Form 1040 with Schedule C or K-1 income), the deadline is October 15, 2025. Be sure to keep both in mind if you’re filing as both an entity and an individual.
- Double-Check That Payments Were Made
Even though you filed an extension, any 2024 tax owed was due back on April 15, 2025. If you did not make a full payment by then, the IRS may assess penalties and interest. Consider making a payment now through the IRS payment portal or your applicable state’s online system (for Michigan, visit Michigan e-Payments) to limit additional charges.
- Reconcile Books and Close Out Financials
Now is the time to finalize your income statement and balance sheet. Make sure your books are clean, payroll is accurately reported, and any shareholder distributions are properly documented. Delays in bookkeeping often cascade into delays in tax filing, especially for multi-owner businesses.
- Stay Current with 2025 Estimated Payments
Even if your 2024 return is still in progress, do not lose sight of your current-year obligations. The IRS and state tax authorities still expect timely estimated payments for 2025 based on your expected income. If you are unsure how much to pay without your 2024 return finalized, use prior-year figures as a starting point or apply the safe harbor method to avoid underpayment penalties. Missing these quarterly payments can lead to penalties that compound quickly. Be sure to stay on schedule, even while your previous year’s filing is under extension.
- Get Ahead of the Fall Filing Rush
Don’t wait until August to pull everything together. Your CPA’s workload, and availability, only gets tighter as extended deadlines approach. Submitting your documents early allows for thorough review and strategic planning.
An extension can be a valuable tool for business owners who need more time, but it does not delay your tax obligations. Staying proactive now ensures you avoid penalties, preserve cash flow, and file with confidence.
Need support finalizing your S-Corp return or organizing your records? The ShindelRock team can help you stay compliant and on track well before the deadline.