Small Business Tax Extensions Aren’t Ideal—But They’re Often Necessary

Still in Tax Season? Here’s How Business Owners Can Take Stock and Move Forward

When we think of tax season, most of us picture the rush to file by April 15th. But for many business owners, that deadline is just the tip of the iceberg.

In reality, a large number of business owners are still deep in tax season—even well past the spring. Whether it’s because they’re waiting on final K-1s, cleaning up year-end books, or still trying to wrap their heads around what actually happened in the previous fiscal year, tax season often stretches into summer and even fall.

And that’s not a failure. It’s simply the result of the all-too-common cycle of playing financial catch-up.

Small Business Tax Extensions Aren’t Ideal—But They’re Often Necessary

Filing an extension isn’t something to be ashamed of. It’s a common, and sometimes necessary, move for business owners who need more time to get clarity on last year’s numbers before finalizing their return.

But here’s the key: while you’re on extension, the opportunity to make smarter tax decisions hasn’t passed you by.

This period can be used strategically—not just to finalize your return, but to:

Identify missed deductions
Explore retroactive tax strategies (such as Defined Benefit Plans funded through 2024 payroll)
Amend past filings if tax-saving opportunities were overlooked

In other words: tax season isn’t over. It’s just not complete—and there’s still time to use it wisely.

Now Is the Time to Ask Two Key Questions

Have we done everything we can to optimize 2024?
Now is your window to comb through last year’s activity with your CPA or tax advisor. There may still be 2024 tax planning strategies that apply retroactively—or that can clarify your return before it’s filed.
How do we stop playing catch-up in 2025?
Let’s be honest: working off year-old numbers is never ideal. The real shift isn’t just about saving money this year—it’s about building a process that gives you real-time financial visibility. That way, you’re not just reacting to what happened in 2024… You're planning with clarity and confidence for 2025 and beyond.

The Real Goal: A Year-Round Tax Planning Strategy

The longer-term objective is to transition from reacting to past results into proactive tax planning for business owners. That means:

Keeping your books current each month
Holding quarterly tax strategy reviews
Coordinating with your CPA, financial advisor, and planning team

Whether you’re a small business, an S-Corp, or a high-income entrepreneur, adopting a year-round tax strategy creates more certainty, better cash flow management, and long-term savings.

This shift doesn’t happen overnight. But if you’re on extension, you’re already in a position to pause, evaluate, and take one more step toward sustainable planning.

Conclusion: Use This Season for More Than Just Filing

If you’ve filed a tax extension, you’re not alone—and you’re not stuck. Take this moment to do two things well:

Look backward with intention: Are there tax moves still available to improve your 2024 return?
Look forward with purpose: What systems and strategies will help you stop playing catch-up and get ahead in 2025?

Because in the long run, the most successful business owners aren’t the ones who scramble hardest before April 15th…

They’re the ones who turn tax compliance into tax strategy—and treat planning as a year-round discipline.

Curious if you're missing opportunities in your 2024 return—or want to stop playing catch-up in 2025?
Let’s start the conversation →