When it comes to putting things off, you can never plan too far ahead!

In many cases IRS allows you to file a 'no-questions- asked' extension form. Which particular form you file depends on what type of entity your business happens to be.

CORPORATIONS: Whether you are a "C" Corporation or an "S" Corporation, you must file Form 7004 by March 15. Doing so grants you an automatic 6-month extension for filing Form 1120 ("C" Corp) or Form 1120S ("S" Corp). So now you have until September 15 to file your corporate income tax return.

Note: Since March 15 falls on a Saturday this year, you actually have until Monday, March 17 to either file corporate income tax return or file extension.

By way, this is true of any tax due date: if due date falls on a weekend or legal holiday, then return is due on next business day.

To get a copy of Form 7004, click here:

http://www.irs.gov/pub/irs-pdf/f7004.pdf

http://www.irs.gov/pub/irs-fill/f7004.pdf

Note: all links in this article take you to IRS forms website. If "irs-pdf" is in link, then you will be taken to a pdf file that can be saved to your hard drive or printed out; then you can complete form by hand and mail it to IRS.

If "irs-fill" is in link, you will be taken to a pdf file with fill-in-the-blank capabilities, enabling you to complete form online and then print it out immediately, without having to complete form by hand.

PARTNERSHIPS: You need to file Form 8736 by April 15. This obtains a 3-month extension to file Form 1065.

http://www.irs.gov/pub/irs-pdf/f8736.pdf

http://www.irs.gov/pub/irs-fill/f8736.pdf

LIMITED LIABILITY COMPANIES (LLC): Same as partnerships -- File 8736 by April 15 to get a 3-month extension to file Form 1065.

(The LLC is a cross between a corporation and a partnership. Legally, LLC is similar to a corporation, offering limited liability to owners. For tax purposes, LLC is treated like a partnership.)

SOLE PROPRIETORSHIP: You need to file Form 4868 to get an automatic 4-month extension to file your personal income tax return.

http://www.irs.gov/pub/irs-pdf/f4868.pdf

http://www.irs.gov/pub/irs-fill/f4868.pdf

Now, before you start extending to your heart's content, please keep following guidelines in mind.

EXTENSION TIP #1:

Never forget mantra of all tax extension forms:

The extension to file return is NOT an extension to pay any tax due. It's only an extension for filing of your tax return.

In other words, do not view extension as an opportunity to legally postpone payment of your tax.

"How's it look?" he asked.

"Well," I said, "You're getting a refund."

"Great! How much?"

"Oh, it's a big one," I said. "Over $5,000 dollars."

Mr. Taxpayer couldn't have been happier. He face lit up like a light bulb. He was ecstatic -- he sincerely believed that he had "beat tax man" by getting such a large refund.

I was not so happy. I couldn't understand his thinking. So I asked him if he really meant to get such a big refund. Mr. Taxpayer was a W-2 employee and so I wondered if his payroll department made a mistake -- were they doing his withholdings wrong? Did he really want to have so much tax taken out of his paycheck each week?

Mr. Taxpayer went on to tell me that he has a tremendous fear of having a balance due on his return. For some reason, he just assumed that if he ended up owing money to government at end of year, somehow he would get in trouble with IRS. So he went to opposite extreme.

In addition, he thought that getting a big refund was a great way to save money during year, so that at end of year he got a nice little "bonus" from government. You know, a forced savings plan.

I can think of at least 5 reasons why Mr. Taxpayer's thinking is flawed.

REASON #1: When you get a big refund, you are loaning your money to government.

My biggest objection to getting a large refund is simple fact that you have given IRS an interest-free loan of your hard-earned money.

Mr. Taxpayer's $5,000 could have been earning interest over course of year. So by letting government keep his money, he was actually losing money!

Sure, with rates so low, maybe we're not talking about a lot of interest income here, but why give government your money any sooner than necessary?

REASON #2: Getting a big refund does not mean you are paying less tax.

I know how complicated are tax system is. It's crazy, convoluted, chaotic and inconsistent. I deal with our tax laws every day, and there's stuff in there that will drive any sane person over edge.

But on this point, there really is a lot of misunderstanding on part of innocent (but misinformed) taxpayers:

Getting a large refund does not mean that you somehow paid less tax than if you got no refund.