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IRS Form 7004 (PDF) “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns”, is a way for businesses to ask for extra time to file their taxes. It's like saying, "Hey, we need a bit more time to get our paperwork together." But, it's important to remember that this is just for filing the paperwork late — it doesn't mean you can pay any taxes you owe later than the original due date.
Filing this form can be done online, which is super quick, or by mail, though sending it by mail means it might take longer to process. The deadline to submit Form 7004 is usually the same as your tax return's original deadline — often March 15 for some businesses and April 15 for others. But the exact date can depend on how your business is set up and how you track your financial year.
By filing Form 7004 on time, businesses can get a six-month extension to submit their tax returns without getting penalized for being late. Just don't forget, if you owe taxes, you still need to estimate how much and pay it by the original deadline to avoid late fees.
For more detailed guidance on how to fill out and submit Form 7004 correctly, and to make sure you're following all the rules specific to your situation, it's a good idea to check out the official IRS guidelines or talk to a tax pro.
Businesses can use IRS Form 7004, to ask for extra time to turn in their tax paperwork. If you fill out and send in this form the right way, you can get six more months to file your business's tax form.
This form doesn't work for every business. For example, if you're running the business all by yourself (a sole proprietorship), you'd need to use a different method to get an extension. And some specific forms, like one used for certain charitable reporting, don't fall under this extension request.
However, the IRS points out that you'll only be eligible for this extension if you meet the following criteria:
• Accurately complete Form 7004, ensuring all required information is correctly provided.
• Accurately estimate the tax liability due and report this estimation on the form.
• Submit Form 7004 by the filing deadline of the tax form for which an extension is sought.
• Remit any outstanding tax payment by the original due date of the tax return.
Submitting Form 7004 enables businesses to secure an extension for submitting various tax returns, including:
*More IRS that are covered can be found in the list below
Form 7004 is applicable to all types of business structures with the exception of sole proprietorships. For their tax filings, sole proprietors use Form 1040 and should apply for any needed extensions using Form 4868 instead.
Additionally, organizations utilizing Form 1041-A for reporting charitable contributions must opt for Form 8868 to request an extension.
It's important to note that Form 7004 does not extend the deadline for the payment of taxes owed. Should you anticipate owing taxes, it's crucial to make those payments by the due date. For assistance in calculating the taxes you may owe, consider referring to resources on estimating tax liabilities.
To complete Form 7004, you're required to gather and enter specific details, including:
Additionally, Form 7004 is structured in two parts
Indicate the specific tax form for which you are applying for an extension using Form 7004. Should you require extensions for multiple tax forms, a distinct Form 7004 must be submitted for each.
Choose from the provided list to determine the tax form you are seeking an extension for with the IRS.
In this section, you'll need to provide details regarding the nature of your business, specifically if it operates as a foreign corporation or has subsidiary companies. For further guidance, refer to the instructions provided with Form 7004.
Additionally, you're required to indicate the tax year for which you're seeking the extension and clarify if your business's accounting period aligns with the calendar year or if it operates on a fiscal year basis. A fiscal year is an alternative accounting period that doesn't coincide with the traditional calendar year ending on December 31st.
In this part, you need to outline the anticipated amount of taxes you owe for the year, what portion has already been paid, and if there is any outstanding amount due.
For more information on calculating the taxes you owe, look into guides on estimating tax liability.
It's not required to add your signature to Form 7004 when you submit it.
Form 7004 can be submitted electronically using the IRS's updated e-filing system. To access this service, you must have an e-services account, including a login and password.
Alternatively, Form 7004 can be sent via postal mail to specific addresses designated for this purpose, which are available here.
It's important to note that processing times for mailed forms are generally longer than for those submitted electronically. A late submission of Form 7004 through mail could result in a penalty. The IRS deems mailed returns as filed on time if the envelope is correctly addressed, bears adequate postage, is postmarked, and is dispatched by the tax return's due date.
The deadline for submitting Form 7004 aligns with the due date of the related tax return, which is typically March 15 for pass-through entities and April 15 for C corporations.
Filing Form 7004 on time automatically grants an IRS tax extension, with no confirmation communication from the IRS unless the extension request is denied.
The IRS typically grants a six-month filing extension for most business tax forms.
Estates and trusts that file Form 1041 receive a five-and-a-half-month extension. Meanwhile, C corporations with tax years concluding on June 30 are afforded a seven-month extension period.
This blog for informational purposes only and does not constitute legal or tax advice or create an attorney-client relationship. Companies should consult their own attorneys or tax accountants for advice on these issues. Because of the generality of the issues discussed in this piece, the information provided may not apply in all situations and should not be acted upon without specific legal or tax advice based on particular situations.
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