It happens to the best of us. You are waiting on a corrected 1099, a K-1 form from a partnership hasn’t arrived, or life simply got in the way. Suddenly, the April 15 deadline is staring you in the face, and your documents aren’t ready.
First, take a deep breath: Filing an extension is not a red flag for an audit. It is a standard, legal request used by millions of taxpayers every year.
However, filing an extension incorrectly especially in South Carolina can lead to expensive penalties. Most people assume an extension buys them time for everything. It does not.
Here is the JM Elitebooks guide to securing 6 extra months safely, covering the specific rules for South Carolina residents and business owners.
The Golden Rule: Read This First
Before you file anything, you must understand one critical concept:
An Extension to File is NOT an Extension to Pay.
This is where 90% of taxpayers get into trouble.
- What it does: It gives you until October 15, 2026, to submit your paperwork (Form 1040) without a Failure to File penalty.
- What it does NOT do: It does not extend the deadline to pay your tax bill.
The Consequence: If you owe the IRS $5,000 and you file an extension but pay nothing on April 15, the IRS will start charging you interest AND a Failure-to-Pay penalty starting April 16.
How to Handle the Federal Extension (IRS)
Getting extra time from the IRS is relatively straightforward.
- Form Required: IRS Form 4868 (Application for Automatic Extension of Time to File).
- Deadline: You must submit this by April 15, 2026.
- How to Calculate Payment: You must estimate your total tax liability for 2025. If you have paid less than that amount through withholding (W-2) or estimated payments, you should pay the difference with your extension.
- Pro Tip: You do not need to mail a paper form. If you make an electronic payment via IRS Direct Pay and select “Extension” as the reason, the form is filed automatically.
The South Carolina Rules (The 90% Rule)
South Carolina follows its own set of rules managed by the SCDOR (South Carolina Department of Revenue).
Scenario A: You Expect a State Refund (or Owe $0) If you have filed a Federal Extension (Form 4868) and you do not owe any tax to South Carolina, you can relax. The state will automatically honor your federal extension. You do not need to file a separate state form.
Scenario B: You Owe Taxes to South Carolina If you owe money to the state, you must be careful.
- The Form: You technically need to file Form SC4868.
- The Easy Way: Instead of mailing a paper form, log into the MyDORWAY portal and make an Extension Payment. This payment acts as your filing.
⚠️ The Critical 90% Rule Gap: South Carolina law states that for an extension to be valid, you must have paid at least 90% of your total tax liability by the original due date (April 15).
- What this means: If you owe $10,000 in total state tax, you must have paid at least $9,000 by April 15.
- The Risk: If you pay less than 90%, the state can retroactively void your extension and charge you late filing penalties dating back to April.
Business Owners: Watch Your Calendar
If you own an S Corp or Partnership, your deadlines are different. Do not follow the April 15 crowd.
- S-Corps (1120-S) & Partnerships (1065) Deadline: March 16, 2026.
- Extension Form: IRS Form 7004.
- Why You Can’t Wait: The penalty for filing a late S Corp return is approximately $220 per shareholder, per month.
- Example: A business with 2 partners that files 2 months late will face a penalty of nearly $880.
- Solution: If your books aren’t ready by March 10, call us immediately to file Form 7004.
Valid Reasons vs. Bad Reasons to Extend
Should you file an extension? Here is our professional advice:
✅ Good Reasons (Strategic):
- Missing K-1s: You are an investor in a partnership and haven’t received your Schedule K-1 yet.
- Roth Conversions: You need more time to calculate recharacterizations for IRAs.
- Accuracy: You have messy records and need time to find deductions rather than guessing.
❌ Bad Reasons (Procrastination):
- I don’t have the money to pay. (Bad idea. You should still file on time to avoid the Failure-to-File penalty, which is 10x higher than the Failure to Pay penalty. We can set up a payment plan later.)
- I’m just too busy. (Waiting usually leads to losing receipts and forgetting details.)
How JM Elitebooks Can Help
Filing an extension is not just about checking a box; it’s about estimating your payment correctly to avoid interest and penalties.
At JM Elitebooks, we help you:
- Run the Numbers: We estimate your tax liability so you can pay the right amount by April 15.
- File Instantly: We submit electronic extensions for Federal (IRS) and State (SC).
- Protect Your Business: We track the March 16 deadline for S-Corps so you never pay late fees.
Need more time? Don’t guess. Contact us today to handle your extension the right way.
Contact JM Elitebooks (864) 844-7720