What Businesses Need to Know about Form 7004?

Are you planned to file form 7004 but confused about how to complete and submit it to the IRS? If yes, then you are in the right place. Most of the employers decide to file Form 7004 to the IRS to extend the time to file the business tax return, but then they get back from filing because of the challenging completion task, which would result in huge penalties. So, to help businesses complete and file the business tax returns to the IRS in an easy and accurate way, here are the step by step Form 7004 instructions!

Purpose of a Business tax extension

Form 7004 acts as an application to request additional time to file business tax returns.

Filing this form properly to the IRS with the estimated tax payment gives the business an automatic 6-month extension of time to file the business income tax returns.

Business tax extension deadline for 2020

The IRS requires businesses that file form 1120-S and 1065 to file business tax extension Form 7004 on or before March 15, 2021, the original due date to submit the tax return.

When it comes to Form 1120, 1041, the taxpayers must file Form 7004 on or before April 15, 2021.

Filing form 7004 on or before the regular due date of the applicable tax return gives filers generally an automatic 6-month extension of time to file their income tax returns. Exceptions apply for certain filers of Form 1041 and for C corporations with fiscal tax years ending June 30.

An estate (other than a bankruptcy estate) and a trust filing Form 1041 are eligible for an automatic 5½-month extension of time to file.

C corporations with tax years ending June 30 are eligible for an automatic 7-month extension of time to file (6-month extension if filing Form 1120-POL).

How to file Form 7004?

Business can choose to file Form 7004 to the IRS using any one of the following methods:

Paper Filing
Electronic filing

Choosing a paper filing option takes longer Processing time and you will receive the acknowledgment from the IRS in delay.

But when you choose an electronic filing option, you can file your 7004 in minutes and get instant approval from the IRS.

In case of any errors, you may also be able to make corrections without any difficulty.

How to Extend the Deadline?

If you cannot prepare and file your business tax form on time with the IRS and you need additional time to file a tax return with the IRS. Individuals, businesses, and nonprofit organizations can file for a tax extension. To extend the time, you can use the tax extension form 7004.

This allows for additional time to file a tax return with the IRS, also saves you from getting unwanted IRS penalties. Please note, to extend the time to file the tax return you must file Form 7004 on or before the regular due date.

An IRS tax extension form is only used to extend the amount of time to file a return but does not extend the amount of time to pay the taxes due. So, you must pay the tax due by the regular due date to avoid charges and interests imposed from the IRS.

Can I file Form 7004 online?

Yes, you can file Form 7004 online or through the paper.

When you choose to file form 7004 online, it just takes an hour to e-file with the IRS than the traditional paper filing method. When you file Form 7004 through paper, it will not provide any sort of notification to know whether it has been processed or not and even longer for the IRS to actually process it.

So choosing the right E-filing provider like ExpressExtension, you can file your Form 7004 with the IRS in a minute and get instant IRS approval.

When is the Deadline for IRS Form 7004?

The deadline to file a business tax extension Form 7004 is based on the organization type and the tax year. For few businesses, the due date is on March 15, 2021, and for other businesses, it is April 15, 2021. So, to find your business’s actual due date to file IRS form 7004, click here.

Step by step Instructions to E-file Form 7004 to the IRS

Below are the information that you must keep in handy when filing Business extension form 7004 with the IRS.

Your legal name, which should match with the IRS records.
Your Employee Identification Number (EIN)
The address of your business. If you receive mail at a P.O. Box, you need to include this address instead.

Once you have the information that matches with the IRS records, here are the step-by-step instructions you need to follow to complete and transmit Form 7004 to the IRS.

Form 7004 has two parts, here we go:

Part-I: Automatic Extension for Certain Business Income Tax, Information, and Other Returns.

Line 1

Enter your applicable form code in the boxes shown on line 1 to indicate the IRS the type of business tax return for which you are requesting an extension of time to file.

Part-II: All Filers Must Complete This Part

Line 2: In case, if you are out of the country (if your business is out of the U.S or any other foreign country) you will get additional 2 months to file business tax returns to the IRS (the 15th day of the 6th month following the close of the tax year).

In case you need an extension of 3 months after the 15th day of the 6th month following the close of the tax year, you must check the box on line 2 of Form 7004 to request an extension of time to file the income tax return.

Line 3: Check the box on line 3, if you are the common parent or agent of a consolidated group requesting an extension of time to file the group's consolidated return.

Line 4: Check the box on line 4, if you are certain foreign and domestic corporations and certain partnerships who are outside the U.S and the due date falls on the 15th day of the 6th month following the close of the tax year.

Line 5a: If you do not use a calendar tax year (starts on January 1 and ends on December 31st), then complete the lines showing the beginning and end dates for the tax year.

Line 5b. If your business has a short tax period, Check any one of the applicable boxes on line 5b for the reason for the short tax year.

Line 6: Enter the total tax, including any nonrefundable credits, you expect to pay for the tax year.

Line 7: Enter the total payments and refundable credits.

Line 8: Enter the balance due amount, you need to pay for the tax year. Form 7004 does not extend the time to pay tax.

E-File Form 7004 With ExpressExtension

E-Filing Form 7004 with ExpressExtension is quick and easy as it saves your valuable time. Our software will give you step-by-step instructions from start to finish that help you to complete your extension in a minute.

ExpressExtension also gives you an advantage to pay your tax due along with Form 7004 to the IRS via Electronic Funds Withdrawal (EFW) or the Electronic Federal Tax Payment System (EFTPS).

To get started, simply create a free ExpressExtension account using your email id! Then our software will guide you throughout the process until you transmit the extension to the IRS. In case your extension gets rejected, you can correct and retransmit it for free of cost!