A timely filed return or extension is important for avoiding hefty penalties, even if you're a non-taxpaying entity. Forms, like 5471 or 5472, carry late filing penalties of $10,000 to $25,000 per form, respectively. It's quite possible to be a smaller C Corporation and have $100,000+ in penalties on the line every year related to extensions.
The general due date rule
If you're a domestic C Corporation, the general rule is your returns, or extension, is due no later than the 15th day of the fourth month following your tax year end.
Example: If the tax year ends on January 31, 2025, your extensions would be no later than May 15, 2025.
Why June 30 has been the exception
So, you just need to file a timely extension; easy, right? Usually, yes, but C Corporations (excluding DISCs) with a fiscal year ending June 30 have historically been the exception. Reg. 1.6072-2(a)(2) provides only 15 days into the third month following the tax year end for timely filed extensions. See additionally P.L. 114-41: Law Sec. 2006 (Tax Return Due Dates).
Example: For a C Corporation with a fiscal year July 1st, 2024, through June 30, 2025, the extension deadline is September 15, 2025. October 15, 2025, extension would be considered late.
What changes for tax years after 2025
So, what's changing? Well, for tax years starting after December 31, 2025 with a fiscal year end on June 30, the extension due date will now be October 15 instead of September 15. The change ends early extension requirements and puts June 30 tax year end in step with the other year ends.
Example: Small Time, Inc., a C Corporation, has a tax year July 1, 2026, through June 30, 2027. Since the tax year started after December 31, 2025, and has a June 30 tax year end, the extensions will no longer be due on September 15, 2027, but instead October 15, 2027.
Why the extra month matters
The extra month should allow for more complete financial statements and lower risk of late-filing and international information return penalties.
Email with any questions or concerns you have about your extensions, generally, or this tax law change, specifically.
This post is for general informational purposes only and is not tax or legal advice. Filing deadlines depend on your specific facts, and rules change. Please consult your tax advisor about your situation.